Won't the new box 3 increase rental prices even further?

Starting from 2028, primary house will be tax-free, and it would be one of the very few options left that are tax-free. And at the same time, rental income will be subject to 36% tax. Taken these together, won't that further increase demand for buying houses and the push to sell out the rental houses?

It reminds me of the tariff discussions in the USA where they expect the tariffs to be born by the manufacturers, but they pass those on to the buyers. Although, we hope the rents to stay same (ie, landlord bears the cost), won't they pass on the costs to renters?

Not everyone can/want to buy a house, and there are a million good reasons for that. So they are going to screw the renters really bad, unless the government builds new homes and rents them out at loss.

So what's the end game here?