Nope.With such schemes the Government landlord lets you live...

Nope.
With such schemes the Government landlord lets you live there without charging rent or interest.
Someone taking advantage of the scheme might be able to get on the property ladder earlier than would otherwise be the case because it would take them less time to get a deposit together.
They would save heaps on interest and might refinance later on using their equity to buy out the government share or not do that and put in a pool instead.
They might do both. Buy out part of the Government share and put in a pool.
Buy all of the Government share then put in a pool.
They would have options to consider.