Rents in Dublin almost back to peak 2007 levels - ESRI

Rate of growth in rent prices picked up in the third quarter, because supply remains too low

Newstalk, growth, increase, Dublin, rent, ESRI, cost, price, statistics, Q3, Q4, 2007 levels, peak

Picture by: Don Ryan / AP/Press Association Images

Private sector rents in Dublin are almost back at their peak levels.

The Private Rental Tenancies Board (PRTB) says rents in the capital are now just 2% lower than their highest point in 2007.

However, the recovery outside Dublin has been slower and rents nationally remain 16% off peak levels.

The PRTB says rents rose by 9% in the year to September.

Private sector rental accommodation across the country is averaging at €901, up from €830 last year. 

One of the authors of the PRTB's quarterly index, Dr David Duffy of the ESRI says that increase is set to continue:

"If you look at the kind of things that drive the demand for rental accommodation, we are still seeing job creation, we are seeing incomes start to pick up at a time when we haven't really seen a significant increase in supply...So I think we are looking that in Q4 there will be a further increase."

Listen to his interview on Newstalk Breakfast here:

Dr Duffy said the uptake of student accommodation could be spiking number for the third quarter, but the next set of figures will be really telling.

He predicts there will have been a 10% annual increase by the end of the year.

These latest statistics also do not show the effect of the government's planned rent freeze.

Historically, landlords do front load rent increases when faced with legislative changes, according to Dr Duffy.