Algarinejo has a beautiful town square, with multiple tapas bars, supermarkets, banks, hardware store, butchers, bakers....basically everything you need! There is a nightclub in the village for nightlife, but the bars stay open extremely late and get quite lively. It is worth going at fiesta time for an authentic late night Spanish party! The rural walks are breathtaking and feature waterfalls and lagoons. There is a municipal pool on the outskirts of the main square which has a bar and restaurant and is free on weekdays! The people are friendly and welcoming and there is a small English community who are well integrated with the locals. A highly recommended destination for a relaxing break away from the England-fied Costa del Sol.
You'll need to know some Spanish, and I'd recommend taking a car as the towns around Algarinejo are equally beautiful and there is a lake beach about 20 minutes away that is well worth a visit. There is also a dam in nearby Rute which is spectacular.