London Mayor Sadiq Khan has set out plans for an unprecedented inquiry into foreign investment in the capital’s property market.

The Labour politician is reportedly concerned about the impact international buyers taking homes off the market has on residents’ ability to get on the housing ladder.

He has called for more transparency to stop “dirty money” flooding into the housing market.

Mr Khan told the Guardian: “It’s clear we need to better understand the different roles that overseas money plays in London’s housing market, the scale of what’s going on, and what action we can take to support development and help Londoners find a home.

“As more and more Londoners struggle to get on the property ladder, there are real concerns about the prospect of a surge in the number of homes being bought by overseas investors.

“Londoners need reassuring that dirty money isn’t flooding into our property market.”

The inquiry is expected to map out areas most effected by foreign investment and examine its impact on the number of affordable houses built.