My thoughts on this:
-The south often gets a bad rep because of London. I feel that outside of the commuter belt, the south is really not all that different from the north/midlands. Most of the negative stereotypes attributed to the 'south' are really just London stereotypes.
-If you have a skill set which is in moderate or greater demand, one's quality of life will be best outside of the south east. The amount of money you can save each month relative to living costs makes SE/London not economically viable. I'm truly amazed by the amount of young people who choose to work in London, with very poor levels of monthly saving.
-The economy/housing situation of the deep-south/south west is not really very different from the north. Housing costs/wages/etc on the southern coastline (with the exception of places like Brighton) are very similar to the north.
-The midlands would be my favourite place, best of both worlds IMO.