Rents in Ireland are falling for the first time since 2004, according to the latest report published by property website, Daft.ie.

Rents have fallen consistently since the start of the year and are now on average 2% lower than in January. The average rent nationwide now stands at €1,369.

The report also found that there has been a dramatic increase in the number of properties available to rent nationwide – doubling from over 6,000 in May 2007 to almost 12,000 now. This increase has been consistent across the country and is likely to be a major factor in the recent fall in rents.

Ronan Lyons, economist at Daft.ie and author of the report notes that the latest findings should be good news for tenants: “the over-supply of available property is likely to mean that rents will continue to fall and at a time when main costs of living such as groceries and energy are rising rapidly, the news that rents are falling should be a welcome relief for renters.”

The nationwide fall of 2% masks some regional variation – in Limerick city and Dublin city centre rents have fallen by almost 3%, whereas in West Dublin and West Leinster rents rose slightly. According to Dr. Eoin O’Sullivan, lecturer in Social Policy at Trinity College, regional variations should persist and continue to be a factor for renters. “Tenants should look forward to further rent declines, although they won’t be uniform across the country. Urban centres are likely to see less decline than locations further out, giving renters a tougher choice between location and cost.”

Despite the recent fall in rents, Dr. O’Sullivan does not see any threat to landlords in the latest findings. “Landlords need not be concerned about the possibility of a gradual decline in rental yields, if their investment is long-term, the quality of their property is high and the property is professionally managed.”