Housing campaigners have called for the introduction in London of a Berlin-style rent cap after the German capital became Europe's first city to implement the controversial policy.
Tenants advocates urged the capital to follow suit as the Labour group on the London Assembly said more needed to be done to protect renters from "arbitrary" rises and "unfair" fees.
A new law capping increases at 10 per cent above the average for the local area came into force in Berlin on June 1 after being agreed by the German parliament in March.
The move was welcomed by the Berlin Tenants Association, whose managing director Reiner Wild told the Guardian: “We don’t want a situation like in London or Paris. The reality in Paris or London is that people with low income have to live in the further-out districts of the city."
Today Jacky Peacock OBE, from the charity Advice4Renters, said: "We support a rent cap similar to the one in Berlin, and London should follow suit.
"High rents are driving more and more people in low paid jobs out of London, both inner and outer London boroughs. We’re facing deep problems are this crisis continues and we are seeing more ‘hidden homeless’ than ever before."
According to official figures from the Office for National Statistics, private rents in London grew by an average of 15.3 per cent between January 2011 and January 2015 - six times faster than in the north of England.
Last year alone they increased by 3.2 per cent. But in some parts of London, tenants have reported even larger rent hikes.
The Camden Federation of Private Tenants, which represents around 400 members comprising some of the third of households in the borough that rent privately, said it commonly sees tenants facing rent rises of between 10-30 per cent.
Organiser Roger Taylor said: "Given the situation with rent levels and rent increases on a daily basis, something needs to be done about this issue.
"And I think - in the absence of the increasing of housing supply, which is a solution that is often touted - that something like rent controls could be part of a solution to the problem.
"If it works in Berlin, in a country like Germany which has a very strong economy, then it could work here."
Nicky Gavron AM, Labour's planning spokesperson on the London Assembly, said the Berlin approach would not work "wholesale" but lessons could be learnt.
“In London millions of renters are left with no protection from arbitrary yearly rent rises and unfair and ever increasing fees," she said.
"What we need is a system which gives London’s renters the peace of mind and security of longer tenancy agreements, a ceiling on excessive rent increases and an end to no fault evictions.”
Government housing minister Brandon Lewis said: “Millions of people use the flexible option of renting and this government is determined to create a bigger, better private rented sector that meets the needs of tenants and landlords well into the future, and encourages investment along the way.
“The measures we’ve taken give tenants the information and confidence they need to rent, and enable developers to build specifically for private rent. We are doing all of this without the need for excessive state regulation that would destroy investment in new housing, push up prices and make it far harder for people to find a flat or house to rent.”
