Homebuyers could save as much as 47% by searching in a postcode neighbouring one of the UK’s most expensive locations, research from Lloyds has suggested.
The bank compared the highest-priced postcode in each nation and region with the least expensive postcode sharing its boundary.
Homes in the neighbouring locations were 28% cheaper on average, although differences in property type, transport, amenities and local character mean the areas are not necessarily directly comparable.
The largest percentage gap was identified in the North East, between NE26 and NE24.
BIGGEST SAVING
NE26, covering Whitley Bay and Seaton Sluice, had an average property price of £304,022. In neighbouring NE24, which includes Blyth, the average was £162,075.
Crossing the postcode boundary could therefore reduce the typical purchase price by £141,947, or 47%.
The biggest cash saving was found between Harpenden’s AL5 postcode and neighbouring LU1 in Luton. Average prices dropped from £587,884 to £351,742 – a difference of £236,142, or 40%.
London buyers could save £232,419 by considering NW2, including Cricklewood and Dollis Hill, instead of neighbouring NW3, which covers Hampstead and Belsize Park. Average prices were £546,348 and £778,767 respectively.
REGIONAL GAPS
Other notable differences included a 36% saving between YO23 in York and YO8 in Selby, while buyers looking beyond WA14 in Altrincham towards M31 could pay 30% less.
The potential saving was 28% between KT6, covering Surbiton and Tolworth, and KT9 around Chessington and Hook.
In Scotland, average prices were 20% lower in Edinburgh’s EH11 than in neighbouring EH3. The equivalent gaps were 24% between CF64 and CF63 in Wales and 11% between BT4 and BT16 in Northern Ireland.
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.”
BIG DECISIONS
Ian Harris, NAEA Propertymark President, adds: “Choosing where to live is one of the biggest financial decisions many people will ever make, so it naturally demands careful thought and attention.
“Buying a home is as much about investing in a lifestyle as it is about finding the right property.
“Many buyers prioritise amenities such as schools, shops, and transport links.
“However, with hundreds of homes for sale at different price points, it pays to look beyond the obvious and explore nearby areas to understand the full range of opportunities available.”
The biggest savings to be had when buying next door to the nation’s most expensive postcodes
