It's nothing to do with where people live. The North East is a geographical region of the UK.
See, this is news to me. I'm in Scotland, and although I've heard people refer to the "north east", the "south east", the Midlands, etc., I never knew they were actual defined names - I though they were just vague geographical areas. So thank you, I've learned something new today.
However I do think the OP, has a bit of a point (even though I've no idea where s/he is based) because for many years, Scotland has been referred to as "the north" or north-east, north-west etc. Not by everyone, but by enough people for most Scots to feel unsure, when hearing the words "north-anything", if it means them or not.
It's especially annoying in weather forecasts when the presenter says "cool in the north and east" and gestures their arm so vaguely across the map that we have no idea what north and east they mean - the BBC are especially bad for it, and I wish they would just use proper county names, then we'd be in no doubt. Learning today the North-East is a defined region of England really doesn't help in that regard!
It's a problem that people in the South and centre of England will never have as everything is "north" to them, but in Scotland certainly, north sometimes means us, and sometimes doesn't, and it's only when "of England" is added that we can be sure.
It's not worth getting fashed about though.