The cost of renting in the north has soared by 10% in the past year – with the average £667-a-month fee becoming the second highest in the country.
Renting in the Highlands and Moray is now, on average, just £10 less than Edinburgh, sparking fears that locals and health workers are being priced out of the market.
Aberdeen and the North-east are part of the cheapest area.
Stewart Nicol, chief executive of Inverness Chamber of Commerce, fears demand is fast outstripping supply in the north, pricing out many young people.
And NHS bosses claim the high costs were hindering recruitment of essential medical specialists, particularly in Skye.
While the average rental price across Scotland increased by just 0.2% in the last 12 months, reaching £572, prices in the north jumped 10.6% – rising £95 over the average.
Mr Nicol said: “The Highlands and Moray is attracting young, highly-skilled workers who can afford to pay high rents.
“But this is pricing many young, lowly-paid local workers out of the market – at a time when many people are also struggling to get mortgages.
“It is a really worrying situation and must be addressed by local government, housing associations and the industry itself.
“We basically need to provide more social and private housing. We also need quicker planning decisions by developers and the councils.
“It is the lack of supply that is driving up the costs.”
Ross Mackenzie, NHS Highland’s area manager west, said: “The availability of suitable affordable accommodation , especially on Skye, is a significant factor that affects the recruitment of staff at the moment, whether it’s renting or purchasing a home.
“It’s certainly true that the high cost of rental property has been a key factor in both whether we can successfully recruit and whether those appointed are able to accept the posts offered.”
He added: “During discussions at a meeting of the Skye, Lochalsh and Wester Ross community planning partnership, lack of accommodation was highlighted as a problem facing all the partners trying to recruit staff to the area.”
The latest rental figures were revealed by Your Move Scotland, whose lettings director Brian Moran said he thought potential home buyers were moving north with a ‘try before you buy’ approach – renting first before deciding to buy in the likes of Elgin and Dingwall.
Prices in Edinburgh and the Lothians rose by 3.1% in the last year, hitting an average monthly cost of £677- higher than any other region.
Mr Moran said: “The Highlands and Islands region is closing in on its rival as prices jumped 10.6% in the last year.”
At the other end of the scale, the east of Scotland, including Aberdeen, continues to have the cheapest rents in the nation.
The average price now stands at £530 following a 1.8% fall in the last year.
A Highland Council spokeswoman said: “It is a key priority of the council’s programme for 2017–2022 to provide homes across the Highlands that are responsive to local needs so that both young and old have a secure roof over their head.”
And Stuart Black, the council’s director of development and infrastructure, added: “We have a good track record of processing planning applications for housing. We are also setting up a major projects team to improve our processing of major applications.”
