RENTS CONTINUE to fall sharply, with a further 5 per cent decline reported in the first three months of this year, according to property website Daft.ie.

The latest Daft Rental Report shows that nationwide rents fell 5 per cent and are now 17.5 per cent lower than their highest point in early 2008. Rental rates have plunged consecutively over the last 14 months and are now at levels that were last seen in May 2005.

The national average rental price has slumped from over €1,000 a year ago to just €840 per month.

Dublin and Limerick posted the largest rent reductions with prices falling by 6.5 per cent. Waterford and Cork dropped by 5.3 and 5.1 per cent respectively.

The average cost of a one-bedroom property in Dublin 2 is now about €1,080 per month while a three-bedroom home in Dublin 6 would fetch an estimated €1,626.

The report indicates that 15,000 new properties come onto the letting market each month and the amount of properties available is now double the amount compared to the same time last year.

Daft economist Ronan Lyons said the market is suffering from too much supply and low demand. “The number of properties available to rent is now over 23,000, an all-time high,” he said. “This additional supply is having a downward effect on price and is also pushing out the time it is taking to rent properties.”

NCB stockbroker’s chief economist Brian Devine believes rental prices could continue to slide. “On the demand side there will be continued pressure on disposable income from tax hikes, job losses and wage cuts. As with the sales market there is little evidence that achieved rents will stop falling. But the outcome is . . . uncertain.”

He added that the increase in demand for rental properties reflects the fall in demand for house purchases.