Hardworking mum-of-two Lucy pleaded with her landlord for help after her rent was increased by $200 a week. What happened next reveals the heartbreaking reality of Australia's housing crisis

A hardworking mother-of-two has revealed how she pleaded with her landlord's agent for her rent increase of $200 to be halved, only to lose her home in response.

The heartbreaking testimony of Lucy was heard along-side other renters' stories at  The People's Commission into Housing in Camperdown in Sydney's inner west on Thursday.

The public hearing is calling for an overhaul of the rental system to protect and help struggling families and individuals who are facing historically high rents and low availability.

Lucy, a single mum-of two, told the commission how she pleaded with her real estate agent after her rent was increased by more than $200 a week to $850, reported 7 News.

'All I could afford was $750. Her reply was an eviction notice,' she said.

Lucy, a mum-of-two, told The People's Commission into Housing that when her rent increased to more than $200 a week to $850, she was given an eviction notice when she told her real estate agent she could only afford $750

The commission heard from renters (pictured) who face housing insecurity due to rising costs. Libby (pictured far left) told the public hearing how her family has had to move six times in six years, which has impacted her children (pictured second from left, renter Lucy, and far-right is co-commissioner Doug Cameron)

'I ended up sitting in my car thinking "This is where we'll be living".'

An emotional Lucy told the hearing that to afford her current rent, she has to work three jobs.

'I'm working all the time,' she said.

'To say I'm tired, is - it's hard.'

Another renter dealing with housing insecurity and affordability, Libby, said she and her family have had to move six times in six years.

The mother said all the moving has affected her kids because the sky-high rents pushed them out of their community.

'We've cut back every possible way we can, but we know we can't do this again,' she said.

'When the next increase comes we'll have to move. We'll most likely have to leave Sydney and our families altogether.'

The co-commissioners, former NSW Labor senator Doug Cameron and University of Sydney housing expert Professor Nicole Gurran, heard evidence Thursday and the hearing will continue on Friday.

A third day of online hearings will be announced soon.

'It's actually about listening to the voices of the victims of the system,' Mr Cameron said.

Everybody's Home, a national campaign to fix the housing crisis said that Australia is currently experiencing a 'historic housing crisis' (pictured renters lining up to inspect a property)

The commission into the housing crisis, which is the first to be held in Australia and convened by housing campaign Everybody's Home, was told that rental solutions go beyond the issue of supply.

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The hearing was told that there needs to be longer term rentals and caps on rent increases to help make a positive impact.

The commission also heard more action is needed - as well as political bravery.

Mr Cameron and Ms Gurran were told if there aren't any changes to the current system, more people will be forced to move away from their area.

A final report will be published with recommendations for the federal government.

According to Everybody's Home, a national campaign to fix the housing crisis, there are now 640,000 Australian families needing social housing.

There is also 122,000 people experiencing homelessness on any given night in the country in Australia's current 'historic housing crisis'.