Where's good for a family in Lanzarote?

[Concestor]

We are planning to go to Lanzarote in September and wondering where best to stay?
We will hire a car but would like to be within walking distance of a beach, shops, and restaurants. We like sightseeing rather than spending all the time on the beach but we do some beach days.
We will be hiring a villa so something which towns would best to look at.

Either Playa Blanca or Puerto Carmen (nearer the harbour).

Playa Blanca

Either Costa Teguise or Playa Blanca. Costa Teguise has a water park, aquarium, lots of water sports, festivals, nearby fishing villages (Pueblo Marinero), a weekly night market and plenty of shops and restaurants. It’s also close to Arrecife which has quite a lot of culture.

Playa Blanca for me. Love it.