The plans will see construction of 15,000 new homes on the site which is only 19 minutes from Central London.

Osborne wants to see the brownfield site transformed under the guidance of a “powerful new body” – similar to the one which changed the face of London’s Docklands in the 1980s.

The “Garden City” Development Corporation will model its plans on Letchworth and Welwyn Garden City.

The Chancellor also confirmed that his Help to Buy equity loan scheme will be extended to 2020 and a further £6 billion invested to help 120,000 more households purchase a new home.

The scheme currently supports up to 30% of all new build homes in England.