The number of residential sales in and around the Capital during 2004 was down by 3.8 per cent on the previous year. The average price achieved by its solicitor members, however, rose by 10.7 per cent to stand at around £161,000 (2003 - £146,000) for the year as a whole.

Fourth quarter price data conformed to a pattern of reduced activity and increased value, with sales volume down by 3.5 per cent and average prices up by 5.4 per cent: rising to around £158,000 for the three months to 31 December 2004.

An average one-bedroom flat in Gorgie, for example, sold for £88,660, compared with around £79,000 in the fourth quarter of 2003, a rise of 11.7 per cent. Likewise, the average price of two-bedroom flats in the Marchmont and Bruntsfield areas increased by 6.1 per cent on 2003, with an average selling price of around £199,000.

The growth was even more marked in the Capital's suburbs, with an average four-bedroom detached house in these areas selling for circa £345,000, which was 20 per cent more than during the fourth quarter of 2003.

Areas within reasonable commuting distance of the Capital witnessed the highest percentage increases in property price inflation, with Falkirk enjoying a 16.9 per cent increase and Stirling a 22.8 per cent increase on the fourth quarter in 2003.