This has been tried in UK for council properties where the tenant has the right to buy. It was introduced by conservatives back last century 1980s) and has led to decimation of council housing stock needed for housing homeless and those or low incomes.
Objectively it ended up being a terrible policy for renters now.
A better way forward is to ensure there are no private and corporate landlords and only local councils are allowed to provide homes for rent. This ensuring local rent controls and stock.