Homebuyers could save almost half the cost of a property simply by looking in the neighbouring postcode rather than the area's most fashionable address, new research reveals.
Analysis by Lloyds found buyers can cut the price of a home by an average of 28% by widening their search to the postcode next door to some of Britain's most desirable locations. The biggest saving is in the North East, where buyers willing to swap the affluent seaside postcode of NE26 for neighbouring NE24 could pay 47% less.
The average home in Whitley Bay's NE26 postcode costs £304,022, but just over the border in Blyth (NE24) the average falls to £162,075 – a saving of £141,947. The findings highlight how postcode boundaries can have a dramatic impact on property prices, even where areas share transport links, schools and local amenities.
London and other regions
In London, buyers priced out of Hampstead and Belsize Park (NW3), where the average home costs £778,767, could instead look at neighbouring Cricklewood and Dollis Hill (NW2), where the average is £546,348. That cuts the bill by £232,419, or around 30%.
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. 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."
Savings across the UK
The pattern is repeated across the UK. In Scotland, buyers moving from Edinburgh's prestigious EH3 postcode to neighbouring EH11 could save £75,335, or 20%. In Wales, choosing Barry's CF63 instead of neighbouring Penarth's CF64 cuts the average purchase price by £82,519, a saving of 24%. Meanwhile in Northern Ireland, buyers can save £31,075 by opting for BT16 instead of neighbouring BT4 in east Belfast.
The biggest regional discounts were found in Yorkshire and the Humber, where moving from York's YO23 to nearby Selby (YO8) cuts prices by 36%, while buyers in the East of England can save 40% by choosing Luton over neighbouring Harpenden.
Biggest postcode savings by region
- North East – 47% (£141,947)
- East of England – 40% (£236,142)
- Yorkshire & Humber – 36% (£135,294)
- London – 30% (£232,419)
- North West – 30% (£123,005)
- South East – 28% (£172,399)
Across Britain, Lloyds found the average saving from buying in the neighbouring postcode instead of the region's most expensive one was 28%, underlining how a small change in location can make a substantial difference to affordability. With mortgage affordability still stretched despite falling borrowing costs, the research suggests buyers prepared to compromise on a postcode rather than the wider area could significantly increase what they can afford without moving far from work, transport links or family.
