The Leicester HomeChoice website is available to all of the 8,000 people on the council's housing register.
It contains photographs and full details of all of the council properties available as well as some housing association properties.
On its first day of operation the site had around 1,350 different users successfully logging onto the website.
Traditionally people in need of housing were given points according to their need, placed on the register, and then had to wait until the council offered them properties it had selected.
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With Leicester HomeChoice, all empty properties will be advertised online, and people on the register can apply to be considered for up to three properties each week that meet their eligibility criteria.
Homes will also be advertised in a weekly vacancy list that will be available on request at city council neighbourhood housing offices, customer service centres, libraries, and community centres.
Cllr Paul Westley, the Council's Cabinet Member for Housing, said: "The old allocation system was fair but didn’t provide tenants with a great deal of choice.
"I'm absolutely delighted that we can offer this new system, which will give tenants greater say in where they want to live.
"It will also mean fewer refusals, as people will be viewing homes they have chosen themselves, rather than ones we have selected for them."
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