Homebuyers could save a considerable amount by considering areas neighbouring expensive postcodes, according to Lloyds research. The bank found that homes in adjacent cheaper areas cost 28% less on average, with savings exceeding that in many locations.
North West Example
In the North West, the most expensive postcode WA14, covering Altrincham, Bowdon and surrounding areas in Greater Manchester, has an average house price of £403,621. Nearby M31, covering Trafford areas Carrington and Partington, has an average price of £280,616, offering a potential saving of £123,005 (30%).
Lloyds 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. 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."
Regional Savings Breakdown
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, Sydenham, Belmont, Stormont) £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, West End) £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, including Cadoxton and Barry Docks) £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%).
