Housing Minister Grant Shapps confirmed today that 120 of the 167 councils that retain housing stock have signed up to the one-for-one deal.

The revamped Right to Buy is aimed at 2.5m council tenants and offers discounts of up to £75,000 to encourage them to become home owners.

This triples the discount in many parts of the country, and quadruples it in London.

Councils that have signed up will now be free decide on the type and size of home they build or hook up with housing associations to deliver new homes.

The Government hopes the scheme will stimulate council house building across the country.

The remaining 47 councils must pass receipts into a central pot, where council can bid for funds to build affordable homes.

Those who sign up by September will be able to keep receipts from July sales onward.

He said: “The reinvigorated Right to Buy has given hope back to thousands of aspiring council tenants who want to own their home – and for the first time, every extra home sold will be replaced on a one for one basis.

“So I’m pleased that 120 councils have seized this prime opportunity to refresh their housing stock by signing up to keep the cash from sales in their area.

“Not only will they be able to hand the keys to home ownership to their existing tenants, they will also be able to help families who for too long have been left languishing on their waiting lists.”

Councils gearing up to build homes from receipts