Conducted by Rightmove, the “happy at home” index, which is in its 10th year, was conducted using the responses of more than 21,000 people across the UK, who were asked to explain how they feel about where they live.
Respondents were asked to rate several aspects of where they live for the study, such as friendliness, community spirit, nature and green spaces, schools, restaurants, shops, and sports facilities.
They were also asked about opportunities locally to develop skills and whether people feel they can be themselves.
In the market town of Hexham, the average price of a house is £297,088, which is lower than the average asking prices for Britain, which is measured at £342,401.
Hexham has topped the “happy at home” index before, having claimed the number one spot in 2019.
Mayor of Hexham Derek Kennedy said: “Hexham is thrilled to be awarded the happiest place to live in Great Britain.
“We are a small town with great history, Hexham Abbey and other historical buildings, and our market place is 800 years old. There is a wonderful community spirit, people are very supportive of one another.”
He added that the town flourishes thanks to its many green spaces and its active sporting community.
“The open countryside is wonderful with Hadrian’s Wall on our doorstep,” he said, before adding how they have ambitions to improve the town even further.
“We have big ambitions to progress our sustainable development and we work with interested groups to enhance the town,” he said.
“We all know how great it is to live in Hexham but to win this accolade is fantastic.”
Ailsa Mather, director at Andrew Coulson estate agency in Hexham, added: “The last 12 months in the market have been phenomenal. People have re-evaluated what they want out of their lives, moving closer to family and moving from the city to the countryside.
“Over 38 per cent of our sales in the last 12 months have been from people south of Birmingham, as more people now have the opportunity to work from home, and don’t need to be in the city five days a week.”
The Happiest Places to Live in the UK
Here are the happiest places to live in Britain, according to Rightmove’s index, with the average asking price and average monthly rental price for homes alongside them.
Hexham, North East, £297,088, £842
Richmond-upon-Thames, London, £1,196,892, £3,235
Harrogate, Yorkshire and the Humber, £353,624, £1,163
Hove, South East, £525,906, £1,879
Llandrindod Wells, Wales, £193,601, £445
Stirling, Scotland, £191,226, £877
Monmouth, Wales, £312,649, £929
St Ives, South West, £494,393, £1,150
Anglesey, Wales, £278,391, £776
Leamington Spa, West Midlands, £350,981, £1,203
Perth, Scotland, £167,160, £679
Hitchin, East of England, £491,223, £1,392
Woodbridge, East of England, £427,542, £1,129
Kendal, North West, £258,961, £837
Macclesfield, North West, £277,772, £981
Exeter, South West, £303,215, £1,234
Salisbury, South West, £318,806, £1,090
Horsham, South East, £433,892, £1,433
St Albans, East of England, £632,320, £1,888
Guildford, South East, £542,947, £1,913
Additional reporting by PA