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The local authority district of Winchester in Hampshire scooped the top spot based on residents' health and life expectancy, employment and earnings, and personal well-being.
The Orkney Islands took second place, followed by Wychavon in Worcestershire, the Derbyshire Dales and Hambleton in North Yorkshire.
Halifax economist Martin Ellis said Winchester residents enjoyed the best quality of life in the UK, due to a higher than average weekly earnings, a low crime rate and good health.
See also: 'Rural premium' to live in the countryside
But a high quality of life comes at a cost.
House prices in Winchester are 9.7 times the average annual local income – much higher than the UK average of 7.2.
Nearly two-thirds (32) of the top 50 best places to live in the UK are in southern England but northern areas were also well represented.
Areas in the south tended to score highly on weekly earnings, weather, health and life expectancy, according to the survey.
Northern areas tended to receive high ratings on low house price to earnings ratio, low population densities, less traffic and smaller primary school sizes.
Northerners believe themselves to be less anxious and happier than in those living in the south, whereas southerners responded as more satisfied and content in life.
Well-being
Wychavon, Derbyshire Dales and Hambleton all scored strongly in the Personal Well-Being Survey as well as long male and female life expectancy.
Both Derbyshire Dales and Hambleton have one of the highest employment rates (87.7%).
Some 45.1% of adults in each area boast a higher level of qualification, such as a degree or professional qualification, compared to a national average of 35.6%.
Former winner of the past five years – Hart, in Hampshire – dropped to 26th in the 2016 survey.
New categories
This was mainly due to the inclusion of the two new categories – number of pubs and the availability of health clubs and leisure centres.
Hart has also dropped, relative to other local authorities, on average earnings and employment rate – categories where it normally scores very highly.
Mr Ellis said: "With more and more emphasis being placed on achieving a good work-life balance, the 2016 Halifax Quality of Life Survey includes a leisure category for the first time.
"This has had an impact on the rankings, especially at the top."
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