PEOPLE living in some of Scotland's furthest-flung outposts enjoy more prosperity than those in London and the South of England, a new survey has found.

Despite conventional wisdom suggesting that the UK's wealthier regions are the most prosperous, a study by the think tank the Legatum Institute has found that residents of the Outer Hebrides, Orkney and the Shetland Isles are among the most prosperous in the country.

This is because the group's latest Geography of Prosperity’ Index measures happiness as well as physical wealth, with those regions regularly topping lists of the best places to live.

Overall, Scotland has four regions in the top ten, according to Legatum, with oil boom town Aberdeen and Aberdeenshire joining the islands on the list, which ranks 170 parts of the UK.

The survey also revealed startline inequalities across Scotland, some of the wealthiest parts of the UK found next to the poorest.

The oil industry helps boost average incomes in Aberdeen and Aberdeenshire to around £34,600, the 13th highest in the country, while incomes in the Outer Hebrides are just £15,000 a year, 135th out of 170.

The islands’ residents from Lewis to Barra are however the happiest in the UK, followed by Orkney Islanders, who rank 2nd.

Elsewhere, the report found that London contains four out of the five most prosperous areas in the country, but also three out of the 10 least prosperous areas including Croydon, Brent and Bexley and Greenwich. Inner London contains nine out of the top ten wealthiest areas.

People in Hammersmith & Fulham and Kensington & Chelsea have an average income of £133,000 a year.

However, 4 of the 10 most miserable areas in the country are also in London: Haringey and Islington, Croydon, Camden & the City of London and Brent.

Hammersmith and Fulham, and Kensington and Chelsea, were said to be the most prosperous areas, followed by Westminster, Wandsworth, Camden and the City of London.

The least prosperous were said to be Wolverhampton, Sandwell (West Midlands), Blackpool, Liverpool and East Derbyshire.

Wales contains three out of ten of the least wealthy parts of the UK, while people living in Anglesey have the lowest incomes in the country, around £11,200 a year.

The Gwent Valleys (£12,300) and South West Wales (£13,300) are also near the bottom when it comes to income. Wales is also the most miserable of the four nations of the United Kingdom.

Sian Hansen, Executive Director of the Legatum Institute, said: “The “Geography of Prosperity” index reveals that prosperity is about more than just wealth, it is about feeling that one’s life is worthwhile. The data shows that Scotland secures four top spots, predominantly due to very high levels of life-satisfaction.

"Residents of the Outer Hebrides have the highest levels of satisfaction with their lives in the whole country.

"Yet, areas like Aberdeen and Aberdeenshire rank highly because the oil industry boosts average earnings considerably, but so too because the area has reasonably high life-satisfaction.

"The index shows that while robust economic success can make an area prosperous, this in itself is not enough. Some of the most prosperous areas of the country are those where, regardless of their income, people have the opportunity to lead healthy, fulfilling and prosperous lives.”