I do understand it. The 2% per year increase is a good thing. It allows landlords to plan financially, save for repairs without suddenly being hit by a big unexpected tax bill.

Also, it encourages long-term ownership, which means stability. As well as long-term tenancy. If expenses don’t go up much from year to year, rents for existing tenants can rise very slowly and the tenants will stay.

I’d support removing the loopholes for transfer outside of a family, and maybe support removing it for corporate-owned property, but that’s about it.