I think you're actually right. Landlords and owner-occupiers both compete as buyers in the purchase market for homes. So even though owner-occupiers are willing to pay more to own than to rent, they set the marginal price of the home in the purchase market, so they set the price landlords have to pay. Landlords then have to charge a premium on top of their cost of ownership to cover their opportunity cost, financial management, taking on the depreciation risk, etc.
I think you're actually right. Landlords and owner-occupiers both compete as buyers in the purchase market for homes. So even though owner-occupiers are willing to pay more to own than to rent, they set the marginal price of the home in the purchase market, so they set the price landlords have to pay. Landlords then have to charge a premium on top of their cost of ownership to cover their opportunity cost, financial management, taking on the depreciation risk, etc.