According to housing association Network Housing Group the revenue from Stamp Duty could lead to a 91% increase in affordable housing.
A London Finance Commission report recommends wide reaching changes to taxation and spending, including control over business rates, stamp duty and other taxes to be passed to the Mayor.
Annual Stamp Duty generates approximately £1.3 billion of revenue which could fund the construction of 7,647 affordable homes in the capital.
In 2012 a total of just 8,380 affordable homes were built across London.
Helen Evans, CEO of Network Housing Group, said: "With property prices in London rising faster than anywhere else in the country and construction starts at shockingly low levels, there is a desperate need for more affordable homes in the capital.
“Londoners account for 13% of the UK population, yet they generated one third of the country’s Stamp Duty revenue last year.
“While the Treasury will of course be reluctant to relinquish control of this significant income, it is precisely this kind of radical solution that is required to tackle a situation which has been left to deteriorate for far too long."