>I think that it is equally likely that landlords will first raise the rents to try to stay in business.

They might try and they certainly would threaten but if they jack up rents and as a result can't get any tenants then they're in an even worse position than before as they have an LVT bill and no income to support it.

Without a restriction in supply or an increase in demand (neither of which would happen), rents can't go up.

It would cause a precipitous decline in property values and a lot of landlords (mostly amateurs) would scramble to sell up and get out of the landlording business as it became more like an actual business and less of a license to print money.