London's housing was at the centre of "political game" under the previous government, Angela Rayner said on Tuesday as she announced new "realistic targets" for the capital.
The Deputy Prime Minister said sweeping changes to the planning system were needed to tackle the housing crisis, which has become particularly acute in the capital.
All councils in England will be given new, mandatory housing targets to pave the way for 1.5 million more homes over five years, Ms Rayner told the Commons.
London will be expected to build 80,000 a year, down from 100,000.
Mayor Sadiq Khan will be asked to "deliver record levels of housebuilding" with government support but the targets will be "based on a more objective assessment of need", Ms Rayner said.
“For too long in London, a political game has been driving the orders given by central government to the Greater London Authority,” she said.
"An artificial boosting of the targets for London meant a target of 100,000 homes for the city – a third of the previous national target.
“Today marks a significant step to getting Britain building again. With no political games – just necessary but realistic targets that will deliver the homes people need where they need them."
She added: “We will still be asking London to deliver record levels of housebuilding in partnership with Sadiq Khan – but our new targets will ensure the number is based on a more objective assessment of need.”
Addressing concerns that the Government is demanding too much housing provision from some areas, Ms Rayner told the Commons: "To this I say we have a housing crisis and a mandate for real change, and we all must play our part.
"Second, that some areas might appear to get a surprising target - well, no method is perfect and the old one produced all sorts of odd outcomes. Crucially, ours offers extra stability for local authorities.
"Third, that we are lowering our ambition for London. I'm clear we're doing no such thing. That London had a nominal target of almost 100,000-homes-a-year based on an arbitrary uplift was absolute nonsense.
“The adoption of the London plan has a target of around 52,000 and delivery in London last year was around 35,000.
"The target we're now setting for London - roughly 80,000 - is still a huge ask but I know it's one that the mayor is determined to rise to and I met with him last week about this.”
Responding for the Conservatives, shadow housing secretary Kemi Badenoch questioned why building targets in London were being reduced.
“The government is in danger of choosing the worst of all worlds,” she said.
“It is not addressing the basic economics of housebuilding, it is centralising decision making, and when you look at all that it looks like 1.5million will be a distant aspiration rather than a meaningful target.”
Labour has said it is committed to preserving nature. But it will use the so-called grey belt, low-quality areas such as disused car parks and wasteland on parts of protected land known as the green belt, for building. .
The announcement will introduce "golden rules" to ensure development works for local people and protects the environment.
Ms Rayner said the "first port of call must be brownfield land", adding: "But it's only part of the answer.
“This is why we must create a more strategic system for greenbelt release, to make it work for the 21st century.
"Local authorities will have to review their greenbelt if needed to meet housing targets, but they'll also need to prioritise low-quality greybelt land - for which we're setting out a definition today.
"And where land in the greenbelt is developed, new golden rules will require provision of 50 per cent affordable housing with a focus on social rent, as well schools, GP surgeries and transport links that the community needs, and improvements to accessible green space."
Ms Rayner, on affordable homes, said housing minister Matthew Pennycook will meet with major developers to ensure "they commit to matching our pace of reform".
She added: "But an active, mission-led Government must also play its role. This is why today I'm calling on local authorities, housing associations and industry to work with me to deliver a council house revolution.
"This isn't just a nice add-on, it is vital to getting the 1.5 million homes built because we know schemes with a large amount of affordable housing are likely to be completed faster. Injecting confidence and certainty into social housing is how we get Britain back to building."
Changes to the National Planning Policy Framework, the guidelines which govern the planning system, which were brought in under the Tory government are also expected to abandoned.
