Homebuyers could save up to 47% by looking just one postcode over, Lloyds finds
Data showed significant price gaps between the UK’s most expensive postcodes and their immediate neighbours, with implications for advisers helping clients widen their search.
Research from Lloyds has revealed how much less buyers could pay by purchasing in a postcode that neighbours the UK’s most sought-after locations.
Homes in postcodes bordering the UK’s priciest areas cost 28% less on average.
The study compared the most expensive postcode in each UK region or nation with the cheapest postcode sharing its border, highlighting how a short move can make a substantial difference to what buyers pay.
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.”
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Savings reach high of 47%
The biggest gap of all was found in the North East, where the region’s most expensive postcode was NE26, covering the seaside town of Whitley Bay. Here, the average house price reached £304,022, a figure driven largely by demand for properties along the seafront.
Just next door, however, sits NE24, an area centred on the industrial port town of Blyth, where the average price fell to £162,075. The difference between the two postcodes worked out at £141,947, equivalent to a saving of 47%, which makes it the largest gap identified anywhere in the study.
In London, one of the capital’s most expensive postcodes was NW3, taking in Hampstead and Belsize Park, where the average price stood at £778,767.
By contrast, the neighbouring postcode of NW2, covering Cricklewood and Dollis Hill, offered an entry point into North West London with an average price of £546,348. That translated into a saving of £232,419, or around 30%.
The biggest monetary saving of £236,142 was in Eastern England, where the prime postcode AL5 covers Harpenden and Kinsbourne Green. In its more economically friendly neighbour, LU1 – comprising South Luton – the average house price was £351,742. This totalled an overall 40% saving.
Scotland’s most expensive postcode was EH3, which covers central Edinburgh and the West End, where the average house price sat at £374,650. Beyond its boundary lies EH11, taking in Gorgie and Stenhouse, where the average price was £299,315. This represented a saving of £75,335, or 20%, for buyers prepared to move slightly further from the city centre.
In Wales, the most expensive postcode was CF64, which includes Penarth, Dinas Powys and Sully, where average prices reached £342,753. Its neighbour, CF63, covering Barry – including Cadoxton and Barry Docks – offered more affordable housing, with an average price of £260,234. This put the saving at £82,519, or around 24%.
Northern Ireland’s most expensive postcode was BT4, which covers East Belfast – including Sydenham, Belmont and Stormont – where the average house price was £278,143. Neighbouring BT16, at the heart of which is Dundonald, offers a more accessible price point, with an average property price of £247,068. This amounted to a saving of £31,075, or 11%.
