Under the proposal, £1.3bn-worth of Stamp Duty raised from London property sales would be channelled into building up to a million homes by the 2030s.

Johnson said since he was elected as Mayor, London’s population had grown by 600,000 and was forecast to rise by a further million over the next 25 years:

“If we do not come up with a new plan to build the homes we need, this great city will suffer and the whole country will feel the consequences.

“What is needed now is a radically different approach which optimises City Hall’s role, unlocks the potential of the capital’s boroughs, allows developers including housing associations to up their game and creates a stable supply of land for housing.

“Above all, London needs a stable funding stream which will support and accelerate its housing and infrastructure delivery.”

Most Londoners involved in property transactions pay at least 3% Stamp Duty, and the mayor has argued this revenue should be retained for the benefit of the city’s population in line with plans to devolve Stamp Duty receipts to Scotland in 2015.

Other housing proposals by the mayor include giving individual boroughs more freedom to build homes, the transfer of surplus Government land to City Hall and the opportunity for pension funds to invest in housing schemes.