Home buyers could save significant sums by looking at properties in neighbouring postcodes rather than the most sought-after areas, according to Lloyds bank. The lender compared higher-value postcodes across the UK with the least costly adjacent ones, finding that homes in these neighbouring areas cost 28% less on average.
Biggest savings in the North East
In the North East, the NE26 postcode covering Whitley Bay had an average house price of £304,022, while the adjacent NE24 postcode covering Blyth had an average price of £162,075 – a saving of £141,947 or 47%. 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.”
London and other regions
In London, the NW3 postcode covering Hampstead and Belsize Park had an average price of £778,767, while neighbouring NW2 covering Cricklewood and Dollis Hill averaged £546,348 – a saving of £232,419 (30%). In Scotland, the EH3 postcode covering central Edinburgh averaged £374,650, while next-door EH11 covering Gorgie and Stenhouse averaged £299,315 – a saving of £75,335 (20%). In Wales, CF64 (Penarth, Dinas Powys, Sully) averaged £342,753, while CF63 (Barry, Cadoxton, Barry Docks) averaged £260,234 – a saving of £82,519 (24%). In Northern Ireland, BT4 (East Belfast) averaged £278,143, while BT16 (Dundonald) averaged £247,068 – a saving of £31,075 (11%).
Detailed regional savings
- Eastern England: AL5 (Harpenden) £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%)
- North West: WA14 (Altrincham) £403,621 vs M31 (Carrington) £280,616 – saving £123,005 (30%)
- South East: KT6 (Surbiton) £625,840 vs KT9 (Chessington) £453,441 – saving £172,399 (28%)
- South West: BS8 (Clifton) £510,864 vs BS20 (Portishead) £385,281 – saving £125,583 (25%)
- West Midlands: CV32 (Leamington Spa) £392,988 vs CV35 (Wellesbourne) £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%)
Bryden 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.” She noted that for first-time buyers, a small shift in location could make a big difference in getting on the property ladder and the kind of home within reach. The analysis used the same mortgage approval data as the Lloyds house price index, based on sales completed in 2025. Prime central London postcodes were excluded due to being small, highly localised areas.
