Nationally, rents in Ireland fell by just over half a percent (-0.6%) during 2010, according to the latest report published by the property website, Daft.ie.

The fall compares with a drop of -15% during 2009 and -10% in 2008. The average rent nationwide now stands at €830 per month, down by -27% from the peak in 2007.

However, the levelling off in rents nationally hides different regional trends. In Dublin, rents in some areas are up to 2% higher than a year ago. In Cork and Galway, rents were largely unchanged over the year. In the cities of Waterford and Limerick, rents fell by between -3% and -4% over the course of 2010. Outside the main cities, rents continued to decline falling on average by -3.5% over the year.

The total number of properties available to rent in Ireland has fallen from a high of over 23,000 in mid-2009 to less than 16,000 at the start of February 2011.

Commenting on the report, Ronan Lyons, economist at Daft.ie, said: “For any property market, be it sale or rental, urban or rural, the key condition for a levelling off in prices is clearing the overhang on the market. In Dublin’s rental market, and to a lesser extent in those of the other cities around the country, that happened over the course of 2010. Across large parts of the country, however, there remains a significant oversupply on the market, which is pushing down rents. All eyes will be on rents in Dublin during 2011, as stable rents could indicate a stabilisation in the labour market and broader economy.”