Homebuyers could cut the cost of buying a property by as much as 47% simply by widening their search to a neighbouring postcode, according to new research from Lloyds.

The bank compared the most expensive postcode in each UK region with the cheapest adjoining postcode and found that homes in neighbouring areas cost 28% less on average.

The biggest gap was in the North East, where buyers willing to look beyond Whitley Bay’s NE26 postcode could make the largest saving.

The average property price in NE26 is £304,022, but crossing into neighbouring NE24, centred on Blyth, cuts the average to £162,075 – a saving of £141,947, or 47%.

Lloyds found similar postcode price gaps across London, Scotland, Wales and Northern Ireland, suggesting buyers prepared to compromise on postcode rather than location could achieve significant savings while remaining close to the same transport links, schools and amenities.

The findings come as affordability remains a key challenge for many buyers, with higher mortgage costs continuing to influence purchasing decisions.

How much can be saved in other parts of the UK?

London

In London, NW3 – covering Hampstead and Belsize Park – is the capital’s most expensive postcode in the analysis, with an average property price of £778,767.

Neighbouring NW2, which includes Cricklewood and Dollis Hill, has an average price of £546,348. Buyers could therefore save £232,419, or around 30%, by crossing the postcode boundary.

Scotland

Scotland’s most expensive postcode is EH3, covering Edinburgh’s West End and surrounding city centre neighbourhoods, where the average property costs £374,650.

Next-door EH11, which includes Gorgie and Stenhouse, has an average price of £299,315 – £75,335 less, representing a 20% saving.

Wales

In Wales, CF64, covering Penarth, Dinas Powys and Sully, has an average house price of £342,753.

Neighbouring CF63, which includes Barry, Cadoxton and Barry Docks, averages £260,234, allowing buyers to save £82,519, or around 24%.

Northern Ireland

Northern Ireland’s most expensive postcode in the study is BT4, covering parts of East Belfast including Sydenham, Belmont and Stormont, where the average home costs £278,143.

Crossing into neighbouring BT16, centred on Dundonald, reduces the average property price to £247,068 – a difference of £31,075, or 11%.

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.”

How much can be saved in each nation and region?

Here are the biggest savings to be had when buying next door to the nation’s most expensive postcodes.

Region Postcode Local areas Average price £ saving % saving
Eastern England AL5 Harpenden, Kinsbourne Green £587,884 £236,142 40%
LU1 South Luton and surrounding areas £351,742
 
East Midlands NN12 Towcester and surrounding areas £360,453 £60,341 17%
NN11 Daventry and surrounding areas £300,112
 
Greater London* NW3 Hampstead, Belsize Park and surrounding areas £778,767 £232,419 30%
NW2 Cricklewood, Dollis Hill and surrounding areas £546,348
 
North East NE26 Whitley Bay, Seaton Sluice £304,022 £141,947 47%
NE24 Blyth and surrounding areas £162,075
 
Northern Ireland BT4 East Belfast (Sydenham, Belmont, Stormont) £278,143 £31,075 11%
BT16 Dundonald and surrounding areas £247,068
 
North West WA14 Altrincham, Bowdon and surrounding areas £403,621 £123,005 30%
M31 Carrington, Partington £280,616
 
Scotland EH3 Central Edinburgh, including the West End £374,650 £75,335 20%
EH11 Gorgie, Stenhouse and surrounding areas £299,315
 
South East KT6 Surbiton, Tolworth £625,840 £172,399 28%
KT9 Chessington, Hook £453,441
 
South West BS8 Clifton, Hotwells and surrounding areas £510,864 £125,583 25%
BS20 Portishead, Pill £385,281
 
Wales CF64 Penarth, Dinas Powys, Sully £342,753 £82,519 24%
CF63 Barry (including Cadoxton and Barry Docks) £260,234
 
West Midlands CV32 Leamington Spa (north) and surrounding areas £392,988 £49,958 13%
CV35 Wellesbourne, Kineton and surrounding areas £343,030
 
Yorkshire and The Humber YO23 York South Bank and surrounding areas £378,295 £135,294 36%
YO8 Selby and surrounding areas £243,001

 

Reflecting on the research, Ian Harris, NAEA Propertymark president, commented: “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.”