It's entirely your own business but it's not a bad idea to get a council house and live there for a few years while saving. If you can get one of one of the nicer council estate anyway.
My parents were offered a council house when they first got married (I think everyone was on the list in those days), but they had already put a deposit down on their first home so couldn't. Obviously though if you had gone into a council house it would give them time to save up and purchase a much better house in 2 - 10 years time. So I agree with your parents, it's not a bad option whether in the short or long term.
Some may think that council houses should only be for those that are most in need but, meh, I recently moved into an ex-council estate and the few homes that are still council I wouldn't describe as too bad off, hardly the bottom of society. I wouldn't feel guilty about moving into a council house, especially in this housing market.