The inhabitants of Craven, a district in the southern Yorkshire Dales, are the happiest in the country, according to official statistics.

At the other end of the scale, the Office for National Statistics’ (ONS) annual study of the nation’s happiness and wellbeing found that residents of Hertsmere borough council, on the northern edge of London’s suburban sprawl, were the unhappiest in Britain in the 12 months to the end of March.

Craven – which includes the town of Skipton and the edges of the Forest of Bowland – reported the highest level of happiness. It was also the area with the highest level of life satisfaction and the lowest level of anxiety among residents.

When told of the area’s ranking, Craven district council chief executive Paul Shevlin said: “As you might expect, I’m very happy to hear this. We’re often recognised as one of the best places to live and this is hardly surprising when you look at our beautiful countryside, brilliant schools, amazing communities and our warm and friendly people.”

Whitehall statisticians began measuring happiness on the instigation of former prime minister David Cameron in 2011, as he looked for other measures besides GDP to measure how the country was doing.

On a regional basis, people in Northern Ireland gave higher average ratings across each of the personal wellbeing measures – life satisfaction, worthwhile, happiness and anxiety – when compared with the other UK countries.

The ONS gives a breakdown for the results across local authorities, although it warns the data must be viewed over several years to get an accurate picture. Taken on the data for the year to the end of March alone, Hertsmere scored the lowest happiness rating.

The area – which includes the Hertfordshire commuter-belt towns of Potters Bar, Borehamwood, Bushey and Radlett – reported the lowest average level of happiness in the UK in the study.

Donald Graham, the chief executive of Hertsmere Borough Council, said he was “surprised” by the findings, adding: “Our last independent residents’ survey found that when asked about the area as a place to live, 90% of residents were satisfied, of which 53% were very satisfied.

“Hertsmere is a diverse borough with easy links to London. We have a strong sense of community with committed local partners and engaged residents, alongside a dedicated borough council.”

In terms of life satisfaction, residents of Wolverhampton have the gloomiest outlook and have done for several years. The West Midlands city also ranks among the places in the country with the lowest feeling that the things people do in life are worthwhile.

The ONS found that despite political upheaval and fears over leaving the European Union, Britain is a more upbeat place than it was before the vote, with life satisfaction at its highest level since records began in 2011.

The government’s official statistics body, which measures everything from inflation to wages, employment and retail sales, found life satisfaction edged up to a record 7.7 out of 10 in the year to March, from 7.6 a year ago.

There was a slight increase in average happiness ratings, while the ratings remained level for anxiety and feelings that the things we do in life are worthwhile.

Matthew Steel of the ONS said: “Today’s figures may surprise some, showing a small increase in both happiness and life satisfaction during a period that has seen political change and uncertainty.”

The score for happiness rose to 7.51 out of 10 from 7.48 a year ago. This comes after ratings levelled off between 2015 and 2016. Earlier years saw regular increases.

The figures come despite uncertainty over Brexit and as the cost of living rises amid sluggish wage growth. But even though British consumers are dipping further into their savings or borrowing to make ends meet, unemployment is at its lowest level since the mid-1970s.

The jobless rate – at 4.3% in the three months to July, the lowest level since 1975 – may account for some of the increased sense of personal wellbeing, according to Steel.

The ONS asked adults aged 16 and over questions such as “Overall, how satisfied are you with your life nowadays?”, with respondents being asked to respond on a scale of 0 to 10, where 0 is “not at all” and 10 is “completely”.

Life satisfaction

Top five

Craven - 8.45

North Warwickshire - 8.36

Orkney Islands - 8.25

Uttlesford - 8.23

Richmondshire - 8.23

Bottom five

Wolverhampton - 7.12

Lewisham - 7.18

Hertsmere - 7.24

Hackney - 7.26

Greenwich - 7.28