The Irish national average residential rent now stands at €771 -  - the lowest level in almost 10 years. Rents across the country have fallen a further 4% in the past three months, according to the latest report published by the property website, Daft.ie.

Dublin rents were again most affected, falling 5% in three months. Rents in Galway remained static, while rents in Cork and Limerick cities fell by 2.5%. Waterford fell more sharply, down almost 4%, while elsewhere around the country, rents fell by an average of 3.8%.

Commenting on the report, Ronan Lyons, Daft.ie economist said:  "While the number of properties available to rent is still at an all-time high, it would appear that these latest price falls are starting to have a positive effect on supply. In Dublin, where drops have been higher than average, the total number of properties available to rent fell by almost 8% in the past 3 months alone."

He continued, "These recent falls in rent have pushed the average rental income back to levels last seen in 2000, which has much wider implications - NAMA was predicated on rents and yields remaining high between now and 2020. However currently the yield on residential property has risen by just 0.1% in the last year, to 3.4% on average, compared to the NAMA benchmark of 6%"

NAMA is the State's "bad bank" for toxic property loans.

Trinity College economist Charles Larkin says in an article in the report:: "While Dublin’s rents have fallen most, rents in other cities have also been significantly reduced in the last 18 months. On average, rents in the cities outside Dublin have fallen 19.5% from peak. The only exception to the ongoing falls is Galway City, where rents appear to be levelling off with a small quarterly increase of 0.4%.

In total, rents there have fallen from peak values by just 15.6%, compared to larger figures in Cork (21.5%), Limerick (21.8%) and Waterford (19%). Elsewhere around the country, rents continue to fall but generally at a slower pace. Rents in Connacht (16.6% from peak) and Ulster (18.4%) have fallen by significantly less than those in Dublin Commuter Counties (24.3%), or Munster (21.4%)."

Larkin also says that the number of people emigrating, is having an effect while long term recovery in the housing sector cannot happen without increases in real incomes.