Mayor orders review of GLA's land portfolio

He said: "We're already on track to deliver 50,000 affordable homes which will benefit thousands of Londoners but this success cannot be an excuse to take our foot off the pedal. We have to set our sights to the future and start working now to deliver the next 50,000 and the 50,000 after that.

"The GLA is sitting on hundreds of potential housing sites that could be used to build more than 32,000 new homes and I know we're not alone. London's councils, private institutions and HCA can all do the same but the cost and red tape involved is suffocating.

"I want to change this. To do this we need innovative ideas that will reshape how we invest, build and deliver and affordable homes in London and in return I'll put my land where my mouth is and show London is leading the way on delivering affordable homes for 2011 and beyond."

The Mayor has asked for an audit of land owned across the GLA family, including Transport for London, the London Development Agency and the London Fire and Emergency Planning Authority, to identify potential development sites.

The proposed scheme would see the GLA act as a shareholder in any new development with future profits reinvested into affordable housing in the capital.

The Mayor said he hoped the offer would inject confidence into the sector, help to get new housing schemes off the ground and attract institutional and other investors to housing developments across the capital.

Belinda Porich, head of London region at The National Housing Federation, said: "We welcome this initiative but it remains to be seen how much of the land will be suitable for housing and whether the extra investment, which might be needed for roads, schools and open spaces, will be available. Not all land can be used for housing immediately.

"That said, land is the key to solving London's housing crisis and this is a proposal which we hope will have legs."

The Mayor also announced that proposals were being explored at the London Development Agency to set up a London-wide housing company. The new company would aim to reduce the cost for boroughs and other public land-holders to make land in the capital available for development.