This country has a huge reliance on the housing market
The problem with that is there simply isn't enough low cost or reasonable rented housing out there
But low cost first time buyer housing has the drawbacks you point out
I would build as many council properties as possible but then unless you put sanctions in place people would buy them as soon as possible after the qualifying period
And then come crying to housing advice centres if they messed up their mortgage payments
The answer is to accept its ok to rent for a lower cost than a mortgage , you don't have to own your home , it's yours as long as you don't shoot the next door neighbour over parking !