Study shows the pricey postcodes to look near if you want to save money on a home
People looking for property could save significant money by searching near expensive postcodes, according to a new study.
Lloyds banks compared higher-value postcodes in different parts of the UK with the least-cost neighboring postcodes located right next to them.
According to Lloyds’ analysis, homes in these neighboring areas cost 28% less on average, but in many places the difference is much wider.
Lloyds found the average price in the NE26 postcode, which covers the seaside town of Whitley Bay in North East England, was £304,022.
The average price of a house in the neighboring area of NE24, which includes the town of Blyth, was £162,075 – £141,947, or 47% less than in neighboring NE26.
Amanda Bryden, head of mortgages at Lloyds, said: “It’s easy to focus on ‘must-have’ locations when looking for a home, but this research highlights just how much value there can be right next door.
“Of course, neighboring areas cannot always be directly compared and each will have its own unique 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 keeping buyers close to jobs, transport links, amenities and communities that are important to them.
“Particularly for first-time buyers, a small change in location can make a big difference not only to getting on the ladder but also to what type of property is available.”
In London, NW3, which covers places such as Hampstead and Belsize Park, is among the city’s most expensive postcodes, Lloyds said. The average house price was £778,767.
But in neighboring NW2, including areas such as Cricklewood and Dollis Hill, the average house price was £546,348; buyers here could pay £232,419 less than in neighboring NW3; This meant savings of approximately 30%.
In Scotland, the average house price for the EH3 postcode, which covers central Edinburgh including the West End, was £374,650.
Neighboring EH11, which covers areas such as Gorgie and Stenhouse, had an average house price of £299,315; This represented a potential saving of £75,335 or 20% compared to the EH3 postcode.
The average house price in Wales in CF64, covering Penarth, Dinas Powys and Sully, was around £342,753.
Next door, in CF63, which covers Barry including Cadoxton and Barry Docks, the average house price was £260,234 – £82,519 lower.
In Northern Ireland, the average house price for the BT4 postcode, which covers East Belfast, was £278,143.
In nearby BT16 the average house price was £247,068 – £31,075 lower than in BT4.
The analysis was based on the same mortgage approval data used to calculate the long-term Lloyds house price index. House price figures refer to sales completed in 2025.
For London, major central locations were excluded from the research due to being small and highly localized areas.
According to Lloyds, the potential savings for each country or area when buying relatively expensive neighboring postcodes with area, followed by the more expensive local area’s postcode and location and average house price, then the cheaper local area’s postcode and location and average house price, and the potential savings in cash and percentage:
East of England
AL5, Harpenden, Kinsbourne Green, £587,884
LU1, South Luton and surrounding areas, £351,742
Potential savings, £236,142, 40%
East Midlands
NN12, Towcester and surrounds, £360,453
NN11, Daventry and surrounds, £300,112
Potential savings: £60,341, 17%
London
NW3, Hampstead, Belsize Park and surrounds, £778,767
NW2, Cricklewood, Dollis Hill and surrounds, £546,348
Potential savings: £232,419, 30%
North East
NE26, Whitley Bay, Seaton Canal, £304,022
NE24, Blyth and surrounds, £162,075
Potential savings: £141,947, 47%
Northern Ireland
BT4 East Belfast (Sydenham, Belmont, Stormont), £278,143
BT16, Dundonald and surrounds, £247,068
Potential savings: £31,075, 11%
North West
WA14, Altrincham, Bowdon and surrounds, £403,621
M31, Carrington, Partington, £280,616
Potential savings: £123,005, 30%
Scotland
EH3, Central Edinburgh, including West End, £374,650
EH11, Gorgie, Stenhouse and surrounds, £299,315
Potential savings: £75,335, 20%
South East
KT6, Surbiton, Tolworth, £625,840
KT9, Chessington, Hook, £453,441
Potential savings: £172,399, 28%
South West
BS8, Clifton, Hotwells and surrounds, £510,864
BS20, Portishead, Pill, £385,281
Potential savings: £125,583, 25%
Wales
CF64, Penarth, Dinas Powys, Sully, £342,753
CF63, Barry (including Cadoxton and Barry Docks), £260,234
Potential savings: £82,519, 24%
West Midlands
CV32, Leamington Spa (north) and surrounds, £392,988
CV35, Wellesbourne, Kineton and surrounds, £343,030
Potential savings: £49,958, 13%
Yorkshire and the Humber
YO23, York South Bank and surrounds, £378,295
YO8, Selby and surrounds, £243,001
Potential savings: £135,294, 36%
