Irish residential rents have begun to stabilise in 2010, falling by just under half a percent in the first quarter of 2010, according to the latest report published by the property website, Daft.ie. Having risen in January, rents fell back slightly in each of the three following months and the average rent nationwide now stands at just under €760.

The stabilisation in rents is being driven by Dublin and Cork cities, where rents have largely been level since the start of the year. In Dublin city centre, rents actually rose 1.3% between January and March. In Waterford and Galway cities, rents fell slightly (by 0.5% and 1.3% respectively), while in Limerick, rents fell relatively sharply, down over 3% on the previous quarter. Outside the main cities, rents typically fell by 1%, a much smaller rate of decline than during 2009. Overall, rents are now 25% below peak levels seen in early 2008.

Commenting on the report, Ronan Lyons, Economist at Daft.ie, said: "The signs from the rental market so far in 2010 point to a market starting to stabilise. Nonetheless, conditions remain fragile, particularly outside Dublin. The total stock available to rent has been very high since late 2008 and, after falling back in the second half of 2009, has started rising again."

Average rents in the cities, Q1 2010

• Dublin: €952, down 14.3% on last year

• Cork: €785, down 11.8% on last year

• Galway: €773, down 8.0% on last year

• Limerick: €638, down 12.9% on last year

• Waterford: €610, down 11.2% on last year

Other findings

• Rent-a-room income in Dublin is generally 10% below where it was a year ago. A double-room in the city centre now typically costs €525 a month.

• The flow of new properties to rent has slowed somewhat in recent months, down 10% annually, although the total number of properties available to rent - particularly outside the cities - remains very high.

• The most expensive one-bedroom rents are in Dublin 4, where they average €1,000 a month, followed by Dublin 18. The cheapest rents are to be found in Ulster, where the average one-bedroom costs €385 a month.

The full report is available from here and includes a commentary by Jill Kerby, Personal Finance Journalist, as well as an analysis of affordability and statistics on residential yields around the country.