Property buyers can save up to £236,000 by widening their searches to spots next door to Britain's most expensive neighbourhoods, according to new research by Lloyds.
The study compared the priciest postcode in each region across the UK with the cheapest postcode sharing the same border. It found homes in neighbouring areas cost 28% less on average, and in many regions the gap is even wider.
Regional savings
The biggest saving is in the North East of England. The region's most expensive postcode, NE26 (Whitley Bay), has an average price of £304,022. Next door, in NE24 (Blyth), the average is £162,075 – a saving of £141,947 (47%).
In the North West, WA14 (Altrincham and Bowdon) averages £403,621, while neighbouring M31 (Carrington and Partington) averages £280,616 – saving £123,005 (30%).
In Eastern England, AL5 (Harpenden and Kinsbourne Green) averages £587,884, while LU1 (South Luton) averages £351,742 – a saving of £236,142 (40%).
In London, NW3 (Hampstead and Belsize Park) averages £778,767, while neighbouring NW2 (Cricklewood and Dollis Hill) averages £546,348 – a saving of £232,419 (30%).
Expert view
Amanda Bryden, head of mortgages at Lloyds, said: "It’s easy to focus on the ‘must-have’ locations when you’re searching for a home, but this research highlights just how much value can sit right next door."
She added: "Of course, neighbouring areas aren't always directly comparable, and each will have its own distinctive character, housing stock and local appeal. But in many parts of the country, looking just beyond the most sought-after postcodes can reveal more affordable options while still keeping buyers close to jobs, transport links, amenities and the communities that matter to them."
Methodology
Lloyds carried out the research with S&P Global, using mortgage approval data. A standardised house price was calculated for each UK postcode prefix, adjusting for property type, size, number of bedrooms and whether a home is a new-build or existing. For Greater London, prime central spots with four-digit postcode prefixes were excluded due to small sample sizes.
