A gradual slowdown in the market has been reported

The statistics from the Registers of Scotland showed that the average house in the area was selling for �117,655 - an increase of 29% on last year.

The average house price in Scotland had risen by 19.3% to �108,238 during the three months to the end of June.

Edinburgh was the most expensive place to buy, with the average price rising to �144,685.

The figure represented an increase of 3.5% on the previous quarter and 18% on 2003.

AVERAGE HOUSE PRICE Edinburgh - �144,685 South east Scotland - �117,655 Glasgow - �104,292 Grampian - �99,042 Central Scotland - �98,261 Highlands and Islands - �94,038 South west Scotland - �91,219

Glasgow remains the largest market in Scotland, with sales of a little under �1.1bn during the quarter.

That figure was an increase of �230m (27%) on the previous year.

The average house price in the city rose by 20% to �104,292.

The total value of sales across Scotland for the quarter is �3.45bn, a rise of �350m from the previous quarter.

The total residential property market in this financial year could be about �14bn.