Rents still have the potential to rise by more than 25%, according to a housing expert.

Housing Minister Simon Coveney has said a new strategy for the rental sector will be published within a month.

However, he has refused to say if it will include measures to control rising rents.

Lecturer in housing at DIT, Lorcan Sirr, says the cost of renting is fuelling wage demands from workers.

Mr Sirr said: “The rents have another at least 25% to rise, that’s a huge rise, if you think the average rent is €1,707 and add 25% to that, then we’re getting then to levels where it becomes totally unaffordable for people.

“Now the problem for the Government is that high rents and high mortgages, but rents in particular, are one of the biggest causes of wage demands from employees to employers.”