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City councils already have the power to enact enforcement orders to buy properties from problem landlords (at least in Scotland they do) it's just that this requires a court order and a lot of time and money spent to do so.
Happened recently in Glasgow because one multi property owner had single handedly turned a whole street into a ghetto of crime, prostitution and people smuggling. I think that's a measure of how bad things need to get before they take action.
So, if they won't take action against individuals until it gets to that point, I wonder if it's easier or harder to do so against a large company?