Edinburgh estate agents have suggested that a slowdown in the housing market is "great news" and say they are still confident about the future of the property sector.

The city is currently the second most expensive place in Scotland to live, according to the Halifax, with the average price of a home there coming in at £229,129.

As analysts predict house price growth across the UK will stall in 2008, a number of estate agents told the Edinburgh Evening News that a cooling market will be beneficial.

Scott Brown, a partner at Warners, told the newspaper that the change "is really to be welcomed", adding: "It spells great news for ordinary people who are simply buying and selling their homes, rather than looking to quickly make money."

"I think we''ll see a growth of between one and four per cent in Edinburgh and Lothians – a steady-as-she-goes figure and one that reinstalls a sense of calm," he forecast.

Steve Spence, a senior partner at Neilsons, added it would be "no bad thing" for house prices to "take a breather".