Many housing experts believe a new government scheme to solve the housing crisis will ultimately favor the south over the north. The new plan, supported by the National Housing Federation, will result in an increase of executive homes in the southern part of the UK. Conversely, the north will still suffer from a lack of construction of social housing.

The new plan has a built-in bonus incentive. Each time a new home is built, the council responsible for the build will be rewarded. A bonus will be paid for each of the first six years the property is occupied. This equates to homes in higher council tax brackets ending up with more rewards. This is due to the rewards being associated with how much the new house is worth.

The government has budgeted an estimated 250 million pounds per year for the execution of the new plan. There will however, be an estimated funding shortage for house building of one billion pounds. This will result in northern councils scurrying to find other ways to fund the construction, while the southern councils will enjoy being in the black.

David Orr, National Housing Federation’s chief executive, commented on the new scheme, saying: "While we welcome the principle of incentives for new homes, ministers have missed an opportunity to ensure the new homes bonus effectively supports the delivery of new affordable homes."

He added: "Every new home should attract the same level of bonus, as the reward should be a reflection not of the value of the house but of the creation of a new home. The new homes bonus will widen the growing north-south divide as hundreds of millions of pounds are redirected from poorer northern areas to the more affluent south."