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Yeah, screw all of that. You want to buy a flat or a house, then buy it. Don’t force some weird “solution” that leads to someone having to sell their property or being hit with a tax that basically kills any chance of renting out something.
Whatever this is could just as well be “outlaw being a landlord and force them to sell everything they own at basically zero value”. You call this a “simple change” when it’s anything but simple - it has more holes in it than swiss cheese.
That is exactly what should happen. It should be practically impossible for an owner to “rent” a property for enough to justify doing it. Landlords should be heavily pressured to convert tenants to buyers.
“Renting” should be confined to commercial activities, not residences. You want to rent out space for a shop, warehouse, office, factory, no problem. This is only for residential property that you are not living in. It should not be economically feasible to rent out such property as an investor, because that practice strips tenants of equity and is the leading factor driving people into poverty.
Go ahead and use your property to generate an income, but do it by charging interest on a loan, not rent.