New research from Lloyds indicates that home buyers could achieve significant savings by considering properties in neighbouring postcodes rather than the most sought-after locations. The bank's analysis found that homes in adjacent areas cost 28% less on average, with the gap even wider in certain regions.
Regional Price Differences
In the North East, the NE26 postcode in Whitley Bay has an average price of £304,022. The neighbouring NE24 postcode in Blyth averages £162,075, a saving of £141,947 or 47%. Similarly, in London, NW3 (including Hampstead) averages £778,767, while adjacent NW2 (Cricklewood) averages £546,348, a 30% saving of £232,419.
Scotland's EH3 postcode in central Edinburgh averages £374,650, compared to EH11 (Gorgie) at £299,315 – a 20% saving. In Wales, CF64 (Penarth) averages £342,753, while CF63 (Barry) averages £260,234, a 24% saving. Northern Ireland's BT4 (East Belfast) averages £278,143, and BT16 (Dundonald) averages £247,068, an 11% saving.
Savings Across the UK
Other notable savings include Eastern England (AL5 Harpenden vs LU1 Luton) with a 40% saving, East Midlands (NN12 Towcester vs NN11 Daventry) at 17%, North West (WA14 Altrincham vs M31 Carrington) at 30%, South East (KT6 Surbiton vs KT9 Chessington) at 28%, South West (BS8 Clifton vs BS20 Portishead) at 25%, West Midlands (CV32 Leamington Spa vs CV35 Wellesbourne) at 13%, and Yorkshire (YO23 York South Bank vs YO8 Selby) at 36%.
Lloyds Mortgage Expert Comments
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.”
The analysis is based on same mortgage approval data used for the Lloyds house price index, with house price figures from sales completed in 2025. Prime central London locations were excluded due to being small, highly localised areas.
