The director of home.co.uk has said redressing the north-south balance is key to solving what he called the “housing crisis” in the south of England.

According to the property search engine, figures released last week show that the gap between asking prices in the north and south of the country is making a mockery of Chancellor George Osborne’s vision for a “northern powerhouse”.

Results from the home.co.uk asking price index revealed that prices across the north of England fell in every single region between July 2008 and July 2015. The worst affected area was the north-east, where asking prices last month were 6.45% below their July 2008 level.

Over the same period asking prices in the north-west fell 5.72%, and in Yorkshire and Humberside the slump was 4.56%.

The dire set of figures contrasts starkly with the property boom in London and the south of England.

Over the past seven years asking prices in the capital have rocketed by a staggering 44.9%, while in the south-east the rise was 24.71%.

Osborne pledged to create a “northern powerhouse” by boosting infrastructure, employment opportunities and the building sector across the region.

But his latest budget included a series of further austerity measures, including cutting back on working tax credits.

Home director Doug Shephard said: “It seems an appalling injustice that post-crisis economic measures have effectively meant austerity for the north and stimulus for the south and London. The north-south divide has been greatly exacerbated in recent years.

“There is no housing crisis in the north and there would not be in the south if workers weren’t forced to up sticks and move south to earn a living.”

Asking prices in the east of England saw a rise of 14.98%, the south-west rose 9.82%, the east midlands by 6.72% and the west midlands by 3.05%.

Meanwhile, Scotland and Wales suffered a similar fate as the north of England, with asking prices down 4.56 and 5.72% respectively over the past seven years.

The full home.co.uk asking price index can be seen here