This year’s Happy at Home study, now in its 11th year, asked more than 21,000 people how they feel about where they live.
The results show that having a sense of belonging to your local area is the most important contributor towards happiness, along with having a strong sense of community, and polite and friendly residents.
Chichester ranked as the fourth-happiest place to live in Sussex. Regionally, West Sussex's only city ranks ninth for happiness while nationally it ranks 39th.
Following the result, the Observer has put together a list of what makes Chichester one of the happiest places to live.
1. Chichester Cathedral
The Cathedral has a rich history in the city and many people from across the country come to Chichester to visit one of the most spectacular cathedral's in England. Photo: Steve Robards
2. Kingley Vale
Kingley Vale National Nature Reserve offers an incredible hiking trail through Britain's most ancient trees among the South Downs and have been said have inspired the famous hymn Jerusalem that celebrates "England's mountains green." Photo: The Great Sussex Way
3. Chichester Harbour
Chichester Harbour is one of the few remaining undeveloped coastal areas in Southern England and remains relatively wild. Its wide expanses and intricate creeks are at the same time a major wildlife haven and among some of Britain's most popular boating waters. Photo: Nicky Horter
4. Priory Park
The park has a rich heritage and is bordered by the medieval city walls to the north and east which are built upon the original Roman foundations. The park was also the place where poet and artist William Blake was tried for sedition after being alleged to have uttered treasonable words in the Fox Inn at Felpham. Today the ground is used by Chichester Priory Park Cricket Club who play in the Sussex Cricket League Division Two. Photo: Steve Robards