Westminster witnessed the biggest decline across the city, with demand dropping by almost half (42%) in comparison to February’s figures.
Westminster has the highest average property prices in the country (£1.7 million) and could see further decline in demand due to the stamp duty reforms and the possible introduction of Mansion Tax.
All four London Boroughs have declined steadily since February with Hackney falling most notably with a 36% reduction in demand.
However, the London Borough of Bexley came out top with a 71% demand for property. As rising prices in the capital push more and more homeowners out of London, the resulting ripple effect has seen an increase in popularity in the surrounding commuter friendly areas.
Reading had the second highest demand for property at 67%, with Brentwood and Hillingdon also placing in the top ten with a 60% demand for property. Sutton (65%), Watford (64%), Guildford (63%) and Medway (56%) also made the top ten as commuter friendly towns close to the capital.
Outside of London, Bristol placed highly yet again at number six however demand in the city has still fallen by 3% since February. Brighton also made the top ten with demand for property on the South coast at 62%.
Demand for property in Scotland is up by 5% since February and Edinburgh came 49th out of Britain’s hot spots, the highest of the Scottish entries.
Glasgow witnessed the most drastic turn around, with demand rising by a total of 28% since February, the biggest change across the whole of Britain.
Demand for property in Hull has risen 26% over the year closely followed by Doncaster and Bradford at 25%. Liverpool has enjoyed an increase of 9% in demand, but demand in Leeds dropped by 5%, Newcastle by 8% and Manchester by 14%.
Demand in the East Midlands sees Derby come out on top with demand up by 3% at 36%.
Birmingham has remained fairly static in its demand for property throughout the year, however as with London there has been a rise in the popularity of its surrounding areas. Coventry and Solihull both ranked higher for December demand than Birmingham although Solihull has suffered a decrease of 4% over the year as a whole.
Demand in Coventry over the year has surpassed Birmingham and risen by 4%, this has increased even further in Wolverhampton (15%) and reached an 18% increase in Walsall. But it is Shropshire that pips Walsall to the post with an overall increase in demand of 19% since February, the biggest change of Birmingham’s surrounding areas.
On the South coast Portsmouth had a 56% demand for property, only two places behind Brighton, and Southampton was close behind with 48%. However demand on the South coast has declined over the space of the year and Plymouth saw the lowest property demand percentage for December (33%) and also the biggest drop over the course of the year at 19%.
Property expert Russell Quirk founder and CEO of eMoov.co.uk said:
“Our latest data goes to show that the property market in London has cooled right down, most notably in Westminster. People are starting to sacrifice the London lifestyle and opt for areas further out to commuter zones. But who can blame them with the advancements in transport making the commute to London a darn site easier, people can reach Central London quicker than they can watch an episode of Grand Designs.
"This is evident with the ripple effect that’s spreading across the surrounding areas and even to the North with a staggering number of Northern locations enjoying a rise in demand. Although demand in December alone may have been lower in comparison to the South, overall the call for property in the North is increasing far greater than down South.
"It’s also interesting to see those spots that may have declined in demand over the course of the year, but are very much growing in demand in the last month or so.
"What will be even more interesting is when the next set of data is revealed whether or not the changes in Stamp Duty Tax have made a difference and which areas have benefitted most. Our prediction is the demand for property up North will continue to increase and London will continue to drop and possibly even stagnate.”
Legal and General director Jeremy Duncombe said:
"Although homeowners in these areas might be pleased to see their homes increase in value, rapid house price growth is not a good thing.
"In London there have long been concerns about people being priced out of the housing market due to unsustainable price rises.
"If the growth trends we have seen in the capital are repeated in other parts of the country, decreasing affordability could start to become an issue across the UK."
"For a healthy housing market, prices should increase at a similar rate to inflation.
"A major factor driving prices higher is the chronic lack of supply of suitable homes.
"Building more houses helps to ensure that supply and demand are more in line with each other, keeping prices lower and therefore allowing more people to buy a home."
