Irish rents have hit a two year low, according to a leading online property firm.

And according to Daft.ie, they are set to fall for another year.

During the past three months rents have fallen, on average, by 3% countrywide.

This, according to Daft.ie, can be explained by the increased supply in available properties to let.

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At the start of this month over 18,000 units were on the market for rent. This is an increased 133% on last year.

Daft.ie says the economic slowdown is closely linked with the uncertainty in the rental market.

Economist Ronan Lyons said: "2006 and 2007 saw an unprecedented number of new homes built in Ireland - probably over 170,000 in two years.

"With no shortage of unsold properties, rents can be expected to continue to fall for perhaps another 12 months.

"Much lower numbers of new homes built from 2009 on - perhaps only 55,000 over the course of 2009 and 2010 - should bring Ireland's property market back into balance," added Mr Lyons.

(PR/JM)