A new study by Lloyds has highlighted how much home buyers could save by purchasing a property in a neighbouring postcode area. While the average saving across the UK is 28%, some locations offer much larger gaps.
In the North East, the postcode NE26, covering Whitley Bay, has an average house price of £304,022. Next door in NE24, which includes Blyth, the average price is £162,075 – a difference of £141,947, or 47%.
National picture
Across the UK, the most expensive and cheapest neighbouring postcodes vary significantly. In London, NW3 (Hampstead, Belsize Park) averages £778,767, while adjoining NW2 (Cricklewood, Dollis Hill) averages £546,348 – a saving of £232,419 (30%).
Other notable gaps include Eastern England's AL5 (Harpenden, £587,884) versus LU1 (South Luton, £351,742), saving £236,142 (40%), and Yorkshire's YO23 (York South Bank, £378,295) versus YO8 (Selby, £243,001), saving £135,294 (36%).
Expert comment
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. Of course, neighbouring areas aren’t always directly comparable and each will have its own distinctive character, housing stock and local appeal.”
She added: “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. For first-time buyers in particular, a small shift in location could make a big difference – not just in getting on the ladder, but in what kind of property is within reach.”
The analysis is based on mortgage approval data used for the Lloyds house price index, with figures relating to sales completed in 2025.
Full list of ‘next door’ savings
Below are the potential savings identified by Lloyds, listed by region, with the more expensive postcode and location first, followed by the cheaper neighbouring area, and the saving in cash and percentage terms:
- Eastern England: AL5, Harpenden, Kinsbourne Green (£587,884) vs LU1, South Luton (£351,742) – saving £236,142 (40%)
- East Midlands: NN12, Towcester (£360,453) vs NN11, Daventry (£300,112) – saving £60,341 (17%)
- London: NW3, Hampstead, Belsize Park (£778,767) vs NW2, Cricklewood, Dollis Hill (£546,348) – saving £232,419 (30%)
- North East: NE26, Whitley Bay, Seaton Sluice (£304,022) vs NE24, Blyth (£162,075) – saving £141,947 (47%)
- Northern Ireland: BT4, East Belfast (£278,143) vs BT16, Dundonald (£247,068) – saving £31,075 (11%)
- North West: WA14, Altrincham, Bowdon (£403,621) vs M31, Carrington, Partington (£280,616) – saving £123,005 (30%)
- Scotland: EH3, Central Edinburgh (£374,650) vs EH11, Gorgie, Stenhouse (£299,315) – saving £75,335 (20%)
- South East: KT6, Surbiton, Tolworth (£625,840) vs KT9, Chessington, Hook (£453,441) – saving £172,399 (28%)
- South West: BS8, Clifton, Hotwells (£510,864) vs BS20, Portishead, Pill (£385,281) – saving £125,583 (25%)
- Wales: CF64, Penarth, Dinas Powys, Sully (£342,753) vs CF63, Barry (£260,234) – saving £82,519 (24%)
- West Midlands: CV32, Leamington Spa north (£392,988) vs CV35, Wellesbourne, Kineton (£343,030) – saving £49,958 (13%)
- Yorkshire and the Humber: YO23, York South Bank (£378,295) vs YO8, Selby (£243,001) – saving £135,294 (36%)
