Many people are struggling to find suitable properties

Solicitors and estate agents are entering the New Year with little stock after buyers continued to snap up properties throughout December.

However, reports show the unprecedented situation has left people struggling to find suitable homes in the city.

Experts warn prices are set to soar even higher in 2007.

Seasonal peaks

Steve Spence of Neilsons said 2006 saw the lack of the usual seasonal peaks and troughs, meaning that Edinburgh now effectively had a year-round market.

He said: "Every property solicitor will confirm that this has been an exceptionally busy year for house sales.

"The statistics support the view that there were no major peaks and troughs this year.

"There has, however, been an imbalance in the market because the sellers have reverted to type and generally adopted the traditional view of delaying putting their property on the market until the spring and autumn.

"The result is that supplies were insufficient to meet demand during the summer and winter which resulted in some record prices being paid for properties that were on the market."

Scott Brown of Warners in Edinburgh agreed that with stock remaining low and demand high, there was every sign that the local property market in 2007 would remain extremely strong throughout the year.

He said: "Some of the firms we have spoken to have almost sold out of their stock of property.