Thanks to everyone for our replies. The bucket is doing the trick. His legs have healed up and the hair is growing back. I've also been to a large pet shop where they've suggested something called "Stop-itch lotion". And I went and bought a clam shell pool. So I've been doing the routine with him, also carefully brushing him to get rid of all the dead undercoat. He seems a lot more comfortable now. I'm not quite game enough to take the bucket off completely, but I did for his dinner and he didn't even attempt to scratch anything. Well, he was too busy with his beef tongue.
I have also changed his diet to mostly raw food. I know that they say to make changes like this gradually. But I thought, as I had been giving him meaty bones and offal a couple of times a week anyway, I could make the switch quicker.
We'll see whether that will help.
Having very humid days with 45 degrees (in the sun), doesn't help, though.

Thanks for everyone's tips. I guess when the vet was so unhelpful and only suggested a dermatologist, I lost hope. When I told him that we could not afford it, he just gave me this judgmental look...

Sasa