Zoopla's latest sales data reveals a consistent flow of private landlords selling properties since 2018, with no signs of acceleration.
That's despite rising mortgage rates making some landlords struggling to make a profit.
Also, the number of homes being rented is unchanged since 2016 which is partly down to the investments being made by institutional investors and corporate landlords.
Zoopla says that of the homes listed for sale on its platform currently, 10% of them were rented previously.
Landlords with mortgages are facing increased borrowing costs
The data shows that landlords with mortgages – which accounts for 20%-30% of the sector - are facing increased borrowing costs.
This financial strain is felt most acutely by those landlords in the South East and London – illustrated by the fact that 51% of landlord sales are in those regions.
Richard Donnell, the executive director at Zoopla, said: "A proportion of landlords continue to sell but talk of an exodus is overstated.
"The real pressure of higher mortgage rates on landlords hits the 20-30% with the highest loan to value mortgages where landlords may need to inject extra capital when they refinance or look to sell.
"Half of all landlord sales are in London and the South East where yields are lowest and the economics of being a landlord are toughest."
Rental affordability is now the worst
Landlords also need to be aware that Zoopla's data shows that rental affordability is now the worst it has been in 10 years.
It also says that rent rises have outstripped wage growth for the last 21 months.
Rent now accounts for 28% of average pre-tax wages – that’s up from the 27% 10-year average.
Unsurprisingly, London remains the most expensive for tenants, with rent accounting for an average of 40% of a tenant’s gross earnings – though this is below the peak seen in September 2015 when it was 43%.
'A relentless increase in rents'
Mr Donnell said: "Renters continue to face a relentless increase in rents, compounding wider cost of living pressures and making home moving decisions ever more challenging, especially for singles and those on lower incomes.
"The chronic imbalance between supply and demand continues to push rents higher but we expect increasingly stretched affordability will start to reduce the pace of rental growth into 2024."
Zoopla says that seven of the 12 regions it monitors are enduring the worst level of rent affordability seen in 10 years.
When rent rises are examined, renters in Edinburgh top the list with a 13.7% increase, then Manchester with 13% and Glasgow with 12.3%.
The property platform is predicting that rent rises will slow down by the end of 2023 to around 8% - which will still be higher than wage growth.
Availability of rental homes is unlikely to improve
One reason for the fast-rising rents is that the availability of rental homes is unlikely to improve in the near future.
For rents to fall, Zoopla says, there needs to be a 'significant increase' in supply or a drop in renter demand.
The current situation is exacerbated by the fact that the busiest time for lettings, between July and September, is fast approaching.
Also, increasing mortgage rates mean that first-time buyers are remaining in the PRS for longer.
The number of homes for rent
The figures show that in most regions, the number of homes for rent remains 20%-40% lower than pre-pandemic levels, leading to increased competition among renters and driving rental growth.
However, while rental supply later this year might improve, it won't be sufficient to bridge the gap back to pre-pandemic levels.
As a result, renters will continue to face challenges in finding affordable housing options into 2024.
Simon Thompson, the managing director of Accommodation for Students, said: "The data from Zoopla is food for thought.
"While there are landlords who are selling up, the PRS still offers opportunity - the level of demand will continue."
He added: "Undoubtedly, more landlords will need to reconsider their options if mortgage costs continue rising.
"But most landlords offering quality homes will see demand maintaining high rent levels into next year."
