House prices in Dublin are now increasing at a faster rate than at any time since the height of the boom, according to new figures released by the Central Statistics Office (CSO).

The figures show residential property prices in Dublin grew by 4.2 per cent in May alone and were 22 per cent higher than a year ago.

Nationally, the year to the end of May saw residential property prices increase by 10.6 per cent compared to an increase of 8.5 per cent in April and a decrease of 1.1 per cent recorded in the 12 months to the end of May last year .

The price of home across the country rose by 2.3 per cent in May, 0.9 per cent more than the increase recorded in April and 2 per cent higher than the increase recorded in May of 2013.

When Dublin is excluded from the figures the price of homes rose by 0.6 per cent in May compared with an increase of 0.1 per cent in May of last year and prices were 1.8 per cent higher 12 months previously

Residential property prices in Dublin are 46.3 per cent lower than at their highest level in February 2007 while prices elsewhere in the State are now 47 per cent lower than their highest level in September 2007. Overall, the national index is 45.1 per cent lower than its highest level in 2007.

“It is likely that, as in previous years, around 8,500 new properties will be built this year, far below our annual need of 25,000,” said Peter Stafford, of Property Industry Ireland, which represents businesses working in the property and construction sector. “Until measures are put in place to improve the supply of new properties in areas where they are needed, prices will continue to rise.”