Analysis by estate agents Your Move found that rents dropped 0.5% during August, the first fall since the start of the year.

The average rent in the nation now stands at £546 per month, £3 lower than the previous month.

Scottish rents are still up compared to the same month last year, having overseen a 1.7% rise in the past 12 months. However, this annual change is much lower than the 2.8% recorded over the summer.

The Highlands and Islands continued to show the largest rent increases, with tenants being charged 6% more than a year ago. Of Scotland’s two major cities, Edinburgh and the Lothians saw rents grow by 2.6% in the past year while prices in the Glasgow and Clyde area were down 3.6% compared to a year ago.

Brian Moran, lettings director at Your Move Scotland, said the Scottish market was calming down after a period of sharp rent rises.

“Scottish rents have retreated back from record levels, after an acceleration of rent rises in 2015. This should provide a welcome let-up for tenants, after only last month rents hit a new record level,” he said.

“This adjustment has also broken up the forward march of annual rent growth that’s been gathering speed recently. But peak lettings season is only around the corner, and this breather may not last for long.

“The vast discrepancy between demand and supply of available homes to let has not disappeared – and this gap will only widen if landlords are scared out of the market by the government’s proposed regulatory changes and draconian rent controls.”