The rise of modern web technology is driving more and more company directors to base themselves up north, new research has found.

According to data analysis firm KDB’s Annual Survey of UK Company Directors 2008, there is a gradual migration of directors from the south to more northerly regions, as well as Scotland and Wales.

While London still has the highest density of company directors (10.4 per cent of the adult population), the south east (8.1 per cent) saw the biggest fall. The South Coast (6.4 per cent), East Anglia (5.5 per cent) and South West (5.7 per cent) also all registered declines.

In contrast, the proportion of company directors in the North East (4.2 per cent), North West (5.1 per cent), Midlands (5.2 per cent), Wales (3.9 per cent) and Scotland (4 per cent) all grew.

KDB attributed the trend to advancements in modern web and communications technology which allows people to run their businesses in virtually any location. It may also reflect a trend among affluent people towards putting more value on quality of life and “off-time”, KDB said.

KDB said company direct density is a decent proxy of entrepreneurial and wealth creation and a strong indicator of the vitality of local economies.

Despite making up just 6 per cent of the adult population, the UK’s 2.83 million directors contribute a third of income tax revenue and more than £5.7bn in council tax.