Areas of low housing demand in the North are being hit by continuing migration towards the affluent South-east, according to an analysis of the 2001 census released on Wednesday.
The report found that the problem was particularly acute with young skilled people, who were moving towards London in "unprecedented" numbers.

But the ODPM said "radical" action was being taken that would turn round the trend of falling Northern populations.

The work, based on an analysis of the census by the University of Sheffield, said the UK was increasingly showing the characteristics of a city-state based around London, with other regions failing to keep up.

Despite the urban renaissance agenda, many core cities suffered large falls in population between 1991 and 2001. Birmingham's population fell 3%, Glasgow and Liverpool 8%, and Manchester 10%.

The share of the country's graduates living in London increased from 16% to 20% between 1991 and 2001.