Many homes have been demolished
The subsidence, which first appeared in the capital's Ferniehill area last autumn, spread to Moredun Park and homes in the Gilmerton area.
Hundreds of people were evacuated as dangerous structural problems began appearing in homes.
A report by engineers into the problem has concluded that the problem has now tailed off but it recommends that no further building work be undertaken.
More than 30 homes in the Ferniehill area have been demolished since subsidence first appeared last October.
In the months that followed 150 people were evacuated from another 52 properties as the problem spread to nearby Moredun Park.
Safety fears surfaced again in March this year when subsidence began to affect properties in Hyvots Bank.
Residents in 141 properties in the area were told they would have to evacuate their homes by the end of June.
Ineffective pillars
Edinburgh City Council launched an official inquiry to identify the cause and scale of the problem in the city's south side.
After drilling 44 bore-holes and conducting tests, engineers have now decided the subterranean failures were caused by the large amount of material originally extracted from mine works.
Their report also blames the relatively ineffective support pillars left in place, their solubility and the flooding of mine chambers in the second half of the 20th century.
It concludes that movement has now tailed off but warns that because there is the potential for more, no construction should be done in the area.
Similar investigations are continuing on other affected sites in south Edinburgh.
An early report on the East Kilngate area has reached similar conclusions and recommends strengthening work.
These proposals will be discussed with local people at a public meeting.
Sheila Gilmore, from Edinburgh City Council, said: "From the time someone said there was a few houses suffering subsidence problems to the current situation was totally unexpected in terms of both the length of time it has taken and the number of houses involved."