Rents are continuing to rise but at a slower pace, according to the latest Residential Tenancies Board and ESRI report.

The national average rent in the third quarter of this year was €1,122 per month, up from €1,044 one year earlier.

Rents in Dublin remain the highest - with the average rent of €1,620 representing an increase of €141 compared to the same period last year.

Second highest rents were recorded in Galway City at €1,187 per month.

The results also indicate that Rent Pressure Zones are slowing the pace of rent increases for existing tenancies.

Rental price inflation dropped to 1.9% in the third quarter of this year - down from 3.6% in the previous quarter.

However, the number of landlords is falling despite high rental prices and record demand.

There are now 1,778 fewer landlords than there were in 2015.

Director of the RTB, Rosalind Carroll, says the latest report tells us three main things.

She observed: "Rents are still going up - we see some reduction in quarterly growth, but obviously affordability issues remain in the market.

"The second thing that it does show us is that Rent Pressure Zones are having some impact, particularly in terms of existing tenancies.

"And then the third main thing that it's showing us is that the number of homes is starting to reduce within the sector."

She added: "If we are to meet demand and ensure a well-functioning rental sector, then we need more landlords and different types of landlords to offer market options. With many landlords leaving, it is increasing strain and pressure and this must be addressed."

Earlier this week, plans were unveiled to hand the Residential Tenancies Board (RTB) new powers to investigate and sanction landlords.