The Halifax Quality of Life survey follows much good news for our city over recent years, which has seen Winchester also top Channel 4's Location, Location, Location rankings on the best place to live in Britain.
Winchester & Chandler's Ford MP Steve Brine said: "I am not at all surprised at Winchester's ranking but I am delighted. Yes, it's a pretty place to live and it's close to London and the coast with a really useful airport on our doorstep, but the fundamentals are strong and improving and that's what I think lies behind this.
"In the past four years or so we've seen a 63% drop in people looking for work in Winchester and that figures rises to 70% in the 18-24 age group.
"This shows a strong and dynamic local economy and that's credit to the council and the extremely positive business community we have here.
"But the only reason I'm able to announce huge investment in our road network for instance, with low noise resurfacing finally taking place this financial year and upwards of £200m for a brand new Junction 9, is because Winchester is part of a growing economy nationally.
"The same is true of £125m investment in new hospital services and the more than £10m we've secured in Winchester for new primary school places. It's never job done but it's a really positive outlook and we aim for the top spot next year."