The housing charity's Rent Trap report claims that in the last year rents rose more than £500 in one in seven local authorities and six areas experienced rent rises of over £1,500.
It also says that 72 per cent of renters say they are only able to save £50 or lesswach month, while 58 per cent report are unable to save anything.
"The renters we speak to have never been less hopeful," said Campbell Robb, Chief Executive of Shelter. "A relentless stream of rent rises means that most feel they will never move on from a life paying ‘dead money’ to landlords, in a home they can’t make their own. And for some, rising rents have more immediate consequences – not enough money to spend on food, fuel or other essentials.
"Unless something changes, the chances of the next generation getting a home to call their own look increasingly bleak. The Government needs to show young people and families exactly how it plans to dismantle the rent trap for good."
Earlier this month, the National Housing Federation warned that a million people living in social housing could struggle with their rent and end up in debt as a result of the Government’s welfare shakeup.
A report commissioned by the Federation found that most housing associations feared a significant rise in rent arrears and believed their residents had little or no idea how the welfare changes to be rolled-out later this year would affect them.