Private rents rose between 6% and 9% in every region of England, with the New Economics Foundation (NEF) warning that the affordability crisis is now a national issue.
The report from the NEF called for an “emergency brake” on rent rises and the return of a national “fair rents” system.
Research found that renters on the lowest incomes are spending just under half their earnings on rent, at 48.5%.
The NEF said this situation is likely to get worse if no action is taken.
The Renters’ Rights Act, which came into force this month, was described as an important step for tenant protections, but the report said it will not fix unaffordable rents on its own.
The proposals set out a cap on rent rises at the lower of inflation or 2%, and a phased return to the fair rents system, which was used for much of the 20th century.
Under this approach, landlords would get reasonable rental income but would not be able to charge excessive rents.
Molly Harris, senior researcher at the NEF, said: “No matter who you are, living in an affordable, secure home is the foundation of a good life. But private renters are often pushed into overpriced and substandard homes.
“The Renters’ Rights Act is a valuable step forward in making private renting safer and fairer – but it doesn’t address the UK’s problem of runaway rents.
“Reviving a proven system that was in place for over 70 years, but redesigned for the 21st century, would make life more affordable for private renters across the whole country.”
Before the pandemic, yearly rent rises were modest and varied across the country, from around 1% in the North East to over 3% in the East of England.
Since then, every region has seen rents go up between 6% and 9%.
The three fastest-growing rental markets are all in North West towns.
The report linked the affordability crisis to decades of policy choices, including the end of rent controls, the sale of social homes through right to buy, and the rise of buy-to-let (BTL) mortgages.
The NEF proposed a package of reforms.
These include an immediate cap on rent rises until a fair rents system is set up, new powers for mayoral combined authorities to run fair rent pilots, and a phased approach to rolling out fair rents in areas with the fastest rent increases.