Housing costs and the Rule of Two

In my rule of two, see, http://www.kevilldavies.com/search?q=rule+of+two, I state that in any social system, nature is mimicked to the extent that any aggregation will reduce  by coalescence but can never number less than two. I wonder if we can apply this rule to home ownership.
Imagine the ideal in a village or town where each house is occupied by the owner. now imagine that as houses fall vacant they are bought by owners of another house. Fuelled by 'buy to let' mortgages, more of the properties sold are bought by existing owners forcing the remaining residents to rent. Gradually over many years these multiple property owners grow like the Church and the Oxbridge Universities leaving fewer and fewer single owner occupiers. you can see where this is going: left long enough unattended the number of owner occupiers will dwindle as controlling, greedy landlords dictate the supply, forcing up costs to unbearable levels. It is another example of how the current 'Capitalist' model which has served well since the industrial revolution, is failing in the 21st Century and the cost of housing in the UK is a manifestation of this failure.
This is only a theory but something needs to be done about the cost of UK housing. Prices must come down to ensure housing is affordable to all. What about limiting banks to give 50% maximum mortgages and putting mandatory rental income at, say, 1990 levels? Greedy landlords will sell as they put their money into schemes, offering a better return, bringing the price of houses down.