Research shows significant price gaps between the UK's most expensive postcodes and their immediate neighbours
Homebuyers could save as much as 47% on property prices by looking just beyond the boundaries of the UK's most sought-after postcodes, according to new research from Lloyds.
The study compared the most expensive postcode in each region with the cheapest neighbouring postcode sharing its border. Across the UK, homes in neighbouring areas cost 28% less on average, with the gap considerably wider in some regions.
The largest saving identified is in the North East of England. The region's most expensive postcode, NE26, covers the coastal town of Whitley Bay, where the average property price stands at £304,022. The adjacent postcode NE24, centred on the port town of Blyth, has an average price of £162,075 — a difference of £141,947 or 47%.
In London, the postcode NW3, which covers Hampstead and Belsize Park, carries an average price of £778,767. Neighbouring NW2, which includes Cricklewood and Dollis Hill, averages £546,348 and is £232,419 or approximately 30% cheaper.
| Region | Postcode | Local areas | Avg 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 | |||
| Source: Lloyds Bank. Average prices based on most expensive postcode per region versus cheapest immediately neighbouring postcode. | |||||
"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," said Amanda Bryden (pictured right), head of mortgages at Lloyds.
"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."
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