Dublin rent prices up 12 per cent as rates soar to a new all-time high

The latest report from property website Daft.ie shows that rents across the country have reached a record high of €1,200 per month.

Figures show that Dublin is the worst affected area with average rents now standing at €1,774, an increase of over 12 per cent on last year.

Further increases where seen in Cork (five per cent), Galway (nine per cent) and Limerick (10.9 per cent).

Author of the report, Ronan Lyons says the report clearly shows that the rent pressure zone system is not working.

“There isn't a single part of the country where rents are increasing less than 4% a year which is what the rent pressure zones are designed to do,” he said.

“It is not clear to me that the system of rent pressure zones is working, in fact it may be having the opposite effect.”

This thought was echoed by homelessness charity Focus Ireland who say that loopholes in the law allow landlords to raise the rent by more than the four per cent limit.

Mike Allen of Focus Ireland said: "The minister has to change that legislation, he has to get rid of that loophole and he has to make sure that families and other people in rented accommodation can rely on the tenancy treatment they have and not see it torn up at a moments notice."

The new rent figures come as the ESRI predict that house prices could rise by up to 20 per cent by 2020 if the rate of supply does not increase.