The Mayor of London, together with the property industry, on Monday made a last-ditch plea asking Chancellor Philip Hammond to take emergency action on housebuilding, as fears about the impact of Brexit on recruitment heighten.

Sadiq Khan said “housebuilders are increasingly worried” that leaving the bloc could make the capital’s housing crisis worse, with a number of companies concerned about access to some 100,000 construction workers from the European Union.

He added that losing skilled workers could be “catastrophic” for building plans.

As Hammond prepares for his November 22 Budget, Khan called for:

Devolution of new powers to London, such as greater control over public land, and allowing councils to borrow to invest in homes;

A massive increase in government funding for homebuilding and infrastructure;

Guarantees of the rights of EU nationals living in London.

The British Property Federation, which counts listed builders British Land and Capital & Counties as members, urged the government urgently to make a deal on EU workers’ rights to be here, while the Home Builders Federation warned reducing the supply of workers “could threaten” future building.

Jon Di-Stefano, chief executive of Telford Homes, said: “I am pleased that the Mayor recognises the urgency required.”

London builder Mount Anvil also supported the plea.

The building industry is also facing falling consumer confidence and flagging prices since the Brexit vote.

Property website Rightmove on Monday said more than a third of homeowners trying to sell their house have been forced to reduce their asking price, with the number of price cuts at their highest level since 2012.