The cost of renting a home in Ireland fell during the first three months of this year, according to an industry report.

The Draft Rental report said the decline in fees could be attributed to the housing market slowdown, a reduced number of migrants in the country, as well as a steady fall in the number of people gaining employment in the construction sector.

According to the report, many populated areas in Ireland have maximised demand for private rental properties, which helps to drive down charges.

Some regions, however, do not conform to market trends. Parts of west County Dublin and Leinster have seen rents costs grow. Although Dublin city centre rates have reduced, they are still not comparable to other parts of the county, with the average difference of a one bedroom apartment being around €400 to one situated in the west.

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The general fall in costs began during the last six months of 2007, this was the product of two years of steady economic growth, which climaxed in summer 2007.

Last month average rent costs were €1,370, this was a €30 fall from the latter months of 2007. To rent a one bedroom letting in Dublin 4 you can expect to fork out around €1,359 per month, in stark contrast to the €510 cost you could pay for a similar sized home in Connacht or Ulster.

Stock in rental property has also grown significantly in the past year, almost doubling. This figure, in May 2007, stood at 5,000, which has risen to 12,000 today.

The report has suggested that long-term investors should not fear a reduction in rents, so long as their holding was maintained at a high quality and managed effectively.

(PR/NS)