The borough was given the accolade after scoring well on several factors during a nationwide poll by banking giant, Halifax.
The annual quality of life research by Halifax looks at communities across Britain and assesses key criteria that homebuyers look at when choosing a place to live.
Fareham borough was celebrated for its general health and happiness of residents, high employment rate and life satisfaction scores. It was praised for having the best quality of life in the whole of the south east.
The news has overjoyed Fareham Borough Council leader, Councillor Sean Woodward, who said he ‘was not surprised’ by the rating.
He said: ‘I have said I will never talk down our town and I won’t. There are those that like to but I don’t because this is a great place to live.
‘This shows just why our borough is so special. People really like Fareham borough as a place to work, to live in and to bring up their families.
‘We’re so close to the Solent, to beautiful countryside and good school - I’m not surprised we’re one of Britain’s best places to live.’
Fareham’s ‘delighted’ MP Suella Braverman added: ‘Fareham has so much to offer; its community spirit, stunning historic buildings and wonderful coastline.
‘I’m honoured to be able to serve such a beautiful and welcoming part of the country.’
Commuter belt favourite, East Hertfordshire, was named Britain’s most desirable place to live and was praised for strong exam results, high life expectancy, excellent health and happiness scores and high average earnings.
While Fareham topped the charts for the south east, which was named the best region to live, featuring three of the top five areas – Hart in third and Horsham in fourth.
Winchester also made the top 50 authorities in Britain, with the historic county town of Hampshire placing 34th on the list.
In August, Fareham was named as Britain's best place to retire thanks to its relatively affordable house prices, proximity to the sea and the amenities of Portsmouth on its doorstep.