Homebuyers could dramatically reduce the cost of buying a home by looking just one postcode away, according to new analysis from Lloyds. The bank found that widening the search to a neighbouring postcode in sought-after areas cuts the typical purchase price by 28% on average.
Regional savings
In Wales, buyers opting for Barry’s CF63 rather than neighbouring Penarth’s CF64 can save £82,519 – a 24% reduction. The starkest gap was in the North East, where switching from Whitley Bay’s NE26 to Blyth’s NE24 means paying 47% less. The average home in NE26 was £304,022, compared with £162,075 in NE24, a difference of £141,947.
London and other cities
London showed a similar pattern. Buyers priced out of Hampstead and Belsize Park (NW3), where the average home costs £778,767, could look next door at Cricklewood and Dollis Hill (NW2) with an average of £546,348 – £232,419 less, a saving of around 30%. In Scotland, moving from Edinburgh’s EH3 to neighbouring EH11 could save buyers £75,335, or 20%. Northern Ireland also featured, with east Belfast buyers saving £31,075 by choosing BT16 over BT4.
Other regions
Yorkshire and the Humber recorded a 36% saving by moving from York’s YO23 to Selby’s YO8. In the East of England, Lloyds said buyers could save 40% by choosing Luton rather than neighbouring Harpenden. Lloyds’ wider snapshot puts the average “next postcode” saving across Britain at 28%.
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.”
