The happiest town in Britain...

Friendly people, beautiful houses and a close proximity to London are just a few of the reasons residents love Chorleywood West.

"The reasons are obvious, aren't they?" said Jane Orrells, the smiling assistant in the local children's wear store. "What more could you ask for?"

For Mrs Orrells and other residents of Chorleywood West, located in the heart of Hertfordshire's golden commuter belt, there was little surprise yesterday as the area was cited the happiest in the country.

The title was the result of exhaustive government research by the Office of the Deputy Prime Minister (ODPM), which examined a host of factors ranging from crime rates to property rates across the UK.

Few rafts of data have provided such an accurate picture as the 37 "indices of multiple deprivation", which will be used by the ODPM to make decision of regeneration policy and funding. The 32,000 "super output areas" (SOAs) studied are far smaller than council ward classifications and they incorporate new categories of data - on crime and the "living environment".

According to the "English Indices of Deprivation" data for 2004, unemployment rates in Chorleywood West are two per cent compared with the national average of 3.4 per cent, while the number of families with two or more cars was 49.8 per cent of residents, dwarfing the national average of 29.4 per cent.

Basking in the afternoon sun, the main tree-lined street of Chorleywood town yesterday appeared to be consistent with its new-found status of the happiest suburban utopia.

Shoppers ambled between Parade Pharmacy and Vanity Fair hairdressers as horse riders made their way up the hill to the nearby common.

For Mrs Orrells, 45, who lives nearby and works part-time at the shop Hopscotch, it was the perfect place to raise a family.

''Everybody is so friendly and it's a family orientated environment,'' she said. "I have lived here all my life and can't think of anywhere else I'd rather be.''

On the other side of the street Catherine Perkins, 35, took a break from the lunchtime rush-hour crowd at her restaurant The Pepper Mill.

"I moved here about 10 years ago and it really has everything we need," she said. "I've got two children and in terms of schools and the common it's great. You really do get the best of both worlds living here as it's so close to London."

As residents were keen to point out, the virtues of living in Chorleywood include the fact that it is only 25 miles from London, is home to a 200-acre common and is dotted with historic homes and pubs as well as a golf course. But despite the benefits it was clear that among some residents there was a price to pay for the area acquiring the good quality of life cited in the government report.

Soaring house prices and a creeping rise in crime rate were among the main complaints of those who have known the area for decades. Lynn Harden, 38, who works in the local shop Pet Fayre, described her surprise at the findings of the report: "I think the place has changed and there is a lot of crime,'' she said. "There was a robbery at the bank a few weeks ago. I used to work in the newsagents down the road and I was held up with a knife.

"I was born in the area but I've had to move out because house prices are unbelievable. I'm sure that the people who move here think it's a nice, quaint little village but it has become expensive."

Concerns surrounding property prices were reflected in the fact that the average cost of a four-bedroom detached property was around £500,000, according to Janet Roberts, secretary at a local estate agents. "There are beautiful properties in the area and there's a large number of millionaires living in places such as the Loudwater Estate.

"It's a very popular area. People who move here are mainly families making their second move. I think it's the best place in the world.''

But the growing disparity between wealthy newcomers and the established locals were among a series of issues facing the area, according to Dr Eleanor Clarke, who has been a county councillor for the past three years.

Dr Clarke, who has lived in the village for 30 years, said: "Chorleywood is located in an extremely fortunate position on the edge of glorious countryside of outstanding beauty.

"But there are problems here. House prices are horrendous and there's a problem with over subscription in schools.

"My own children are unable to afford to live here and there's a shortage of social workers and teachers.

Among the most recent victims of Chorleywood's rare imperfections was the children's wear store itself. Last week more than £6,000 of merchandise was stolen after burglars circumvented the alarm system and smashed through the front windows.

Brendan Reilly, 56, the owner of Hopscotch, said: "It is a delightful place, but it's the third time in 10 years that we have been broken into and I've moved to Watford because it's so expensive to live here."

Despite these issues, Richard Ward, Conservative MP for Hertfordshire South West, which includes the wards of Chorleywood East and West, was adamant that the area was worthy of its new-found status. "The scene throughout my constituency is one of independence,'' he said. "They look after themselves, they worry about themselves and they fight for their corner themselves.

"It's a very interactive village and it's this community spirit that pushes them together."

One passer by most succinctly summarised the response to the report among residents: "It's great to find out that we live in the happiest place in the country. But make sure the article doesn't push the property prices up even more."

CHORLEYWOOD WEST

* Population: 6,000

* Number of schools: 3 primary, 1 secondary

* Violent crime per 1,000 population: 2.4

* Mainline station: Tube and Chiltern Line train at Chorleywood

* Residents with University degrees: 39.8%

* Unemployment: 2%

* Detached and semi-detached houses: 64.1%

* Celebrity links: Michael Portillo's mother. Terry Pratchett, below, was born and raised there; Chorleywood gets a mention in 'Good Omens'. Val Doonican and Jimmy Tarbuck lived there.