Location may be firmly at the top of many home buyers’ minds – but those searching for a property could potentially save significant sums by looking next door to pricey postcodes – according to a major bank.
Lloyds compared higher value postcodes in different parts of the UK with what it found to be the least costly neighbouring postcodes sitting next to them.
According to Lloyds’ analysis, homes in these neighbouring areas cost 28% less on average, but in many places the gap is significantly wider.
In the North East of England, Lloyds found that in the postcode of NE26, encompassing the seaside town of Whitley Bay, the average price was £304,022.
Next door in NE24, which takes in the town of Blyth, the average price of a home was £162,075 – £141,947 or 47% less than in neighbouring NE26.
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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“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.”
Lloyds said that in London, NW3 is among the city’s most expensive postcodes, covering locations such as Hampstead and Belsize Park. The average house price there was £778,767.
But in neighbouring NW2, including areas such as Cricklewood and Dollis Hill, the average house price was £546,348, buyers here could pay £232,419 less compared to neighbouring NW3 – a saving of around 30%.
In Scotland, the EH3 postcode, covering central Edinburgh, including the West End, had an average house price of £374,650.
Neighbouring EH11, covering areas such as Gorgie and Stenhouse, had an average house price of £299,315 – a potential saving of £75,335 or 20% compared with the EH3 postcode.
In Wales, the average house price in CF64, which covers Penarth, Dinas Powys and Sully, had an average house price of £342,753.
Just next door, CF63, which covers Barry, including Cadoxton and Barry Docks, the average house price was £260,234 – £82,519 less.
In Northern Ireland, the BT4 postcode covering East Belfast had an average house price of £278,143.
In nearby BT16, the average house price was £247,068 – £31,075 less compared with BT4.
The analysis was based on the same mortgage approval data used to calculate the long-running Lloyds house price index. House price figures relate to sales completed in 2025.
For London, prime central locations were excluded from the research due to being small, highly localised areas.
Here are the potential savings to be had when buying next door to postcodes which are relatively expensive for each nation or region, according to Lloyds, with the region, followed by the postcode and location of the more expensive local area and the average house price followed by the postcode and location of the less expensive local area and the average house price, and the potential saving in cash and percentage terms:
Eastern England
AL5, Harpenden, Kinsbourne Green, £587,884
LU1, South Luton and surrounding areas, £351,742
Potential saving, £236,142, 40%
East Midlands
NN12, Towcester and surrounding areas, £360,453
NN11, Daventry and surrounding areas, £300,112
Potential saving: £60,341, 17%
London
NW3, Hampstead, Belsize Park and surrounding areas, £778,767
NW2, Cricklewood, Dollis Hill and surrounding areas, £546,348
Potential saving: £232,419, 30%
North East
NE26, Whitley Bay, Seaton Sluice, £304,022
NE24, Blyth and surrounding areas, £162,075
Potential saving: £141,947, 47%
Northern Ireland
BT4 East Belfast (Sydenham, Belmont, Stormont), £278,143
BT16, Dundonald and surrounding areas, £247,068
Potential saving: £31,075, 11%
North West
WA14, Altrincham, Bowdon and surrounding areas, £403,621
M31, Carrington, Partington, £280,616
Potential saving: £123,005, 30%
Scotland
EH3, Central Edinburgh, including the West End, £374,650
EH11, Gorgie, Stenhouse and surrounding areas, £299,315
Potential saving: £75,335, 20%
South East
KT6, Surbiton, Tolworth, £625,840
KT9, Chessington, Hook, £453,441
Potential saving: £172,399, 28%
South West
BS8, Clifton, Hotwells and surrounding areas, £510,864
BS20, Portishead, Pill, £385,281
Potential saving: £125,583, 25%
Wales
CF64, Penarth, Dinas Powys, Sully, £342,753
CF63, Barry (including Cadoxton and Barry Docks), £260,234
Potential saving: £82,519, 24%
West Midlands
CV32, Leamington Spa (north) and surrounding areas, £392,988
CV35, Wellesbourne, Kineton and surrounding areas, £343,030
Potential saving: £49,958, 13%
Yorkshire and the Humber
YO23, York South Bank and surrounding areas, £378,295
YO8, Selby and surrounding areas, £243,001
Potential saving: £135,294, 36%
