In the annual update on the Treasury's plans for the economy, the Chancellor of the Exchequer Philip Hammond proposed a £3.15bn devolution deal for London that would provide the funding to build 90,000 homes.

As a result of negotiations with the chancellor, the rules on how City Hall can use utilise funds means the mayor can now build new homes for low-cost rent, London Living Rent and for shared ownership between now and 2021.

Mr Khan said: “I’m delighted that we today took the first steps towards a major new devolution deal for London.

“London has a bigger population than Scotland, Wales and Northern Ireland combined, but we have far less control over how our city is run.

“Today’s marks the first step in our journey to give the capital a greater voice so we can protect jobs, wealth and prosperity and provide an extra incentive for economic growth.

“The record-breaking affordable housing settlement means we can get on with the hard slog of building new, genuinely affordable homes, but it won’t happen overnight – fixing the housing crisis will be a marathon and not a sprint.

“Of course, we didn’t get everything we asked for today – securing more control for London will not happen overnight.

“I’m disappointed, for example, that the chancellor didn’t devolve control of suburban railways in London.

“Commuters who rely on Southern, South West and Southeastern services are currently being ripped off with a terrible service. I hope the government will move on rail devolution sooner rather than later.”

It has also been announced that the mayor will continue negotiations with the Treasury and Downing Street for further deals on housing, devolution and control over public services.