New Lloyds research shows how much you can save on buying property in the UK
Homebuyers hunting for a dream address could slash the cost of getting on the property ladder by simply nudging their search over a postcode boundary, according to new figures. Lloyds says widening the net to the next-door postcode in some of the UK’s most in-demand areas cuts the typical purchase price by 28% on average.
The bank’s analysis suggests the savings can be dramatic even when neighbouring districts share the same transport routes, schools and everyday amenities. In Wales, the data pointed to a notable split in the Vale of Glamorgan: opting for Barry’s CF63 rather than neighbouring Penarth’s CF64 trims the average price by £82,519 – a 24% reduction.
The starkest gap was recorded in the North East, where switching from Whitley Bay’s sought-after NE26 to nearby Blyth’s NE24 means buyers could pay 47% less. The average home in NE26 was put at £304,022, compared with £162,075 in NE24 – a difference of £141,947.
Lloyds said this kind of “postcode premium” can shape what buyers can afford, without necessarily moving far away from the places they know. London showed a similar pattern. Buyers priced out of Hampstead and Belsize Park (NW3), where the average home costs £778,767, could look next door at Cricklewood and Dollis Hill (NW2) with an average of £546,348 – £232,419 less, a saving of around 30%.
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. 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.”
The same postcode-by-postcode price gap was found across the UK, the bank said. In Scotland, moving from Edinburgh’s EH3 to neighbouring EH11 could save buyers £75,335, or 20%. Northern Ireland also featured, with Lloyds saying buyers in east Belfast could save £31,075 by choosing BT16 over BT4.
Elsewhere, the biggest regional reductions included Yorkshire and the Humber – where moving from York’s YO23 to Selby’s YO8 cuts prices by 36% — and the East of England, where Lloyds said buyers could save 40% by choosing Luton rather than neighbouring Harpenden.
Lloyds’ wider snapshot puts the average “next postcode” saving across Britain at 28%, a sign that the letters and numbers in an address can carry a hefty price tag.
With affordability still tight for many households even as borrowing costs ease, the lender said some buyers may be able to stretch their budget further by compromising on a postcode- while staying close to work, public transport and family.
