Your Move Scotland’s rental tracker has revealed that two areas of Scotland were in particularly high demand over the course of the year, with both the Glasgow and Clyde and Highlands and Islands regions seeing large rent rises thanks to an increased number of tenants seeking properties.

When all areas of Scotland are considered, prices grew by 0.9% in the year to December, Your Move Scotland found. The average rent now stands at £576 (seasonally adjusted). On a non-seasonally adjusted basis the average rent was £584.

Activity in the rental market declined in December as usual, with many property hunters choosing to delay any move until the new year, Your Move Scotland found.

However, this slowdown did not dampen the demand for properties in Glasgow, where prices have increased 12.7% in the last 12 months. Properties in the city and surrounding area remain highly sought after by renters.

This put it ahead of the Highlands and Islands region, where prices grew 12.1%. In this region, and Inverness specifically, theUniversity of Highlands and Islands and Raigmore Hospital are creating demand from students relocating to the area and doctors and nurses from all around the UK.

But, despite the strong annual price growth, there are signs that the market in the Highlands couldbe slowing down. The annual growth rate has slowed significantlyfrom the 2018 peak, which was 14% in October.

Nevertheless, December’s growth rate was still well ahead of the remaining three regions.

In the Edinburgh and Lothians region, rents increased by 4% in the last 12 months to reach an average of £691. The remaining two areas both saw average rents fall.

In the East of Scotland prices tumbled by 1.2% and now stand at £532, the lowest Scotland. Prices fell even faster in the South, dropping 3.4% to £535.

Compared to November’s prices, Edinburgh and the Lothians saw the greatest increase as prices rose 0.5%. Close behind was the East of Scotland which saw 0.4% growth month-on- month followed by Glasgow and Clyde at 0.3%.

The average rent across all regions of Scotland is £576. This is up 0.3% month-on-month and 0.9% compared to December 2017.

Brian Moran, lettings director at Your Move Scotland, said: “The Scottish rental market ended the year in good shape, with prices up on a national level. Some regions saw much faster growth than the national average, as renters were drawn to Scotland’s two major cities, their surrounding areas and the remote beauty of the Highlands.

“In Glasgow areas along the Clyde, like Ferry Village, are proving popular with tenants for their new build properties and riverside location. It’s a number of hotspots like these that are pushing average prices up.

“The introduction of the PRT has created a shift in the rental market, with more families coming to the market thanks to the increased security provided by these tenancies. As such, the concept of the ideal investment property being a two-bed city bolthole is shifting in favour of large family homes in commuter areas such as Fife. We’re also seeing both East and West Lothian grow in popularity, with tenants happy to do the commute into Edinburgh.”

“As rents rise, there is less focus on the ‘single tenant’ who wants to live near local amenities such as bars and restaurants and more focus on sharers and families looking for green outside space and good schools. That being said, Edinburgh prices continue to increase, demonstrating the desirability of living in Scotland’s capital.”