It said this poses real problems for the work incentives of people living in high cost areas such as London.
Analysis by the Chartered Institute of Housing (CIH) shows the households affected by the existing cap are those living in particularly high cost areas.
We have a system that does not build or supply the houses that are necessary and, indeed, under the housing act forces councils to sell high-value properties in high cost areas.
Under the new contract, resources will be linked to the patient rather than to the GP, and practices with less healthy patients or in high cost areas will get more cash than they do now.
Recent reports have shown that it can cause the public sector to struggle to recruit and retain the right staff in high cost areas or areas with significant disadvantages, leading to higher fatality rates in hospitals and worse school exam results in deprived neighbourhoods.
Though dubbed "subprime hotspots," these high cost areas were really "Alt-A eruptions".
The plan lifts the cap from $417,000 to $725,000 in high cost areas, in an effort to address the mortgage crisis.
The results of this study are compared with the results of other studies performed in the high cost areas of the US east and west coasts.
In most countries and jurisdictions, an explicit goal of regulation has been the provision of service to customers in high cost areas at 'affordable' prices and this has been achieved by cross-subsidies within the regulated monopoly.
This also suggests low wages may be the culprit, since the relatively flat pay structure in the NHS does not adequately adjust wages in high cost areas (there is an adjustment, but it is small compared with London housing costs, for example), driving nurses away [ 29].
The UK North Sea is particularly vulnerable because it is a high-cost area from which to produce oil.
