The Government increased the maximum discount that was available for tenants who want to buy their council homes from £16,000 to £75,000.
The reinvigorated Right to Buy model has meant that the discounts available have increased by 400% in most London boroughs, allowing many more tenants to consider purchasing their homes.
In London, half as many applications were received for Right to Buy sales in April as were received in the whole of the previous year, according to a report by industry magazine Inside Housing.
Based on figures from 18 London boroughs, councils received an average of 39 applications in April, compared with 67 in the whole of 2011, the report said. If tenants continue to apply at the same rate as they did in April, London councils could receive in excess of 800 applications this year.
However, many councils are concerned that the increase in Right to Buy sales will lead to a loss of social housing stock, despite the Government's pledge that every home sold under the scheme will be replaced with a new affordable rent home.
The Government's own research makes it clear that the money generated locally by Right to Buy sales will not always secure a replacement home in each area, the Chartered Institute of Housing (CIH) said.
Under the new Right to Buy model it is expected that there will be 100,000 sales by 2019, the Government said. The current annual Right to Buy sales amount to fewer than 3,000.
The Inside Housing survey showed that Birmingham Council received 172 applications in April, compared to a total of 601 applications for 2011, and that Sandwell Council received 60 applications in April, which is three times more than in April 2011.
"We could potentially lose a larger number of our best quality stock at a time when we already have a shortage of social homes and 20,000 people on our waiting lists," said Ian Wingfield of Southwark Council, according to the report. Southwark council received 109 applications in the first month since the increased discounts were announced, compared with 230 applications for the whole of 2011.
Despite the increase in the number of applications that council have received, property research firm Hometrack has raised concerns over lending, which shows that many of the applicants may not be able to obtain the finance to proceed with purchases.
"Only a 'small proportion' of tenants will be able to obtain a mortgage given that fewer than 20 per cent of council tenants are in full-time employment," according to Richard Donnell, head of research at Hometrack.
