I agree "the whole idea is to move away from dependency and state support, not towards it". That is the point I am making - rents have become unaffordable in part because HB effectively boosts the size of the market for rent. It creates demand where otherwise there would not be demand.
Market rent in a free market would entail people renting according to what they are both willing and able to afford. This is the only relevant principle. Answer me this - if more people refused to pay the asking price and demanded a discount, because they could not afford to pay the asking price, landlords would reduce the rent or suffer lost income.
It is because Landlords can find people who are willing to pay the rent demanded (even if above 35%), and who are able to (with trade offs in other respects), that rents are as they are.