London's average monthly rent may surge to over £2,700 by next year, according to new data from City Hall, marking a £133 increase from the current average of £2,567.
The projections will heap further pain on renters who have been stung by rising living costs and already sky-high rents.
Surging rental costs have resulted in London families spending on average 40% of their wages on rent.
Inner London saw higher rates at £3,059, while outer London was slightly less at £2,206.
City Hall's new analysis, based on projected increases from property firm Savills, predicts a 5.5% rise this year and a further 5% increase next year, from the Rightmove average of £2,480 at the end of 2022.
Mayor Sadiq Khan, who has been vocal about the city's housing crisis, criticised the government for its perceived inaction. "Private renters make up nearly a third of everyone living in the capital, but they are being consistently let down by a government that refuses to listen and take urgent action to protect them from even greater financial hardship," Khan said.
The Mayor's comments come a week after Prime Minister Rishi Sunak announced plans to address the capital's housing shortage, criticising Khan's house-building record.
Khan has been advocating for a two-year rental freeze, arguing that the latest figures present a "clear picture" that controls are necessary.
A study commissioned by London Councils revealed a 41% reduction in properties available for private rent in the city since the pandemic.
The research, conducted by Savills and the London School of Economics, also found that only 2.3% of listings in the capital on Rightmove in 2022-23 were affordable to low-income households, who use housing allowance to top up their rent payments.
James Watkins, head of policy and public impact at the London Chamber of Commerce and Industry, expressed concern about the potential impact on the city's economy.
"At a time when London businesses desperately need to draw new, and retain existing, skilled workers, soaring rental costs are not helping to keep key workers in the capital. The concern that rental costs could soar to £2,700 per month could further impede the economic recovery of London," Watkins said.
The Department for Levelling Up, Housing and Communities responded to the situation, stating: "Evidence shows that rent controls in the private sector do not work, as they lead to declining standards, a lack of investment and may encourage illegal subletting."
However, Ben Twomey, chief executive of campaign group Generation Rent, called for a "big increase" in affordable and social housing. "Spiralling rents are driving families into poverty and onto the streets.
“The average London renter is already putting 40% of their wages straight into their landlord’s pocket, and this situation shows no sign of improving. Without action, Londoners will continue to face sky-high rents which are forcing the likes of nurses and teachers out of the city," Twomey said.