Re: @Phil O'Sophical - @The Axe - The reality
Unless you suddenly have someone with a massive property portfolio entering the system flooding the market with cheap housing AND people in existing properties were willing to up-sticks, any new entrants would make very little difference if they decided to charge half the going rent for a few rooms or even houses.
But, of course, what actually happens is that majority new entrants will look at the "going rate" (ie what is being charged elsewhere) and think "well if they can charge that, so can I". Sure, if they don't get any takers they may drop their prices a bit, but they're still going to charge as much as the traffic will bear.
And, FYI, I have looked into the market, some years ago I was considering getting into buy-to-let properties, but decided that it wasn't a good option.
PS But also, FYI, if I had, I was looking at what the *minimum* I could charge for rent to service the costs involved, rather than the *maximum* would be that I could get away with to make as much profit as possible.