Orkney has been crowned the best place to live in the UK, according to Halifax.

The archipelago has been runner up in the Quality of Life survey for the last two years, but high employment, a low crime rate and good schools have helped it reach the top spot.

Residents of Orkney say they feel fit and well, with more than nine in 10 (97%) reporting good or fairly good health.

It’s also one of the most affordable places to live with an average house price of £173,349, 5.2 times the average annual pre-tax local income, compared to the national average of 7.3.

Orkney has the highest employment rate with nearly nine in 10 (88%) 16-64 year-olds in work and weekly average earnings of £671, plus latest ONS figures indicate adults living in Orkney are amongst the most happy, satisfied and content in the UK, with low anxiety rates.

Top places to live

Richmondshire in North Yorkshire took second place, followed by Rutland in the East Midlands, Hambleton in North Yorkshire and Eden in Cumbria in fifth place.

More than half (28) of the top 50 best places to live in the UK are now outside Southern England, with eight in the East of England, including St Albans (9th), East Hertfordshire (14th) and Uttlesford (18th).

East Midlands, West Midlands and Yorkshire and the Humber each have five areas, including Rutland (3rd), Hambleton (4th), Ryedale (8th) and Derbyshire Dales (10th). The North West and Scotland both have two areas and Wales one – Eden (5th), Ribble Valley (23rd), Orkney (1st), Shetland (39th) and Monmouthshire (48th).

South East shines

The South East has more areas in the top 50 than any other region, with 18. These include South Oxfordshire (6th), Vale of White Horse (11th), Waverley (12th) and last year’s best place to live, Hart (13th).

London has just two areas in the top 50 – Westminster (15th) and Richmond upon Thames (40th) and the South West only one – Cotswold (7th).

Russell Galley, managing director of Halifax, said: “Orkney has consistently been considered one of the best places to live in the UK and Orcadians will be delighted to hear they have now taken the crown. Its remote location may not be for everyone, but this comes with the benefit of having high employment, low crime rates, smaller class sizes and more affordable housing.

“While the South East continues to have the most locations in the top 50, we’ve seen Northern areas perform particularly well on education while they also benefit from lower house prices when compared to average earnings.”