Could buying one postcode over save you thousands on your new home?

Feel priced out of the most sought-after postcodes? New findings show that widening your search to neighbouring postcodes could dramatically boost affordability. Here we take a closer look.

August 11, 2026

Location may be the buzzword when it comes to house-hunting, yet looking just one postcode over could cut the cost of your purchase by up to 47%.

This is according to new research from Lloyds which shows that going just a short distance beyond the most sought-after areas can reveal far more affordable options for buyers.

The lender found that compared to properties in the priciest postcode in each region, homes in neighbouring postcodes that share its’ border are, on average, 28% cheaper.

In several parts of the country, the savings are even greater – reaching as much as 47% – suggesting buyers could make some significant savings by buying next door.

Which area offers the greatest saving?

The biggest postcode price gap is in the North East of England, the study found, where buyers could save almost half the cost of a home by looking just a little further afield.

Analysis by the lender reveals the average house price in the most expensive postcode, NE26 – which covers the seaside town of Whitley Bay – is £304,022. Properties here often command a premium.

Cullercoats Bay in Whitley Bay on the north east coast of England

Yet if you head just across the postcode boundary to NE24 – which includes the industrial port town of Blyth – the average price tag is £162,075.

Blyth coastline showing houses, a boat in the river, and wind turbines on the North Sea

That’s a saving of 47%, or £141,947, which clearly highlights how widening your search by just one postcode could significantly increase your buying power.

Savings can also be found across the UK

The North East isn’t the only place where buyers could make big savings by looking one postcode over.

In London, moving from NW3 (Hampstead and Belsize Park) to neighbouring NW2 (Cricklewood and Dollis Hill), could save buyers £232,419 – or 30%.
In Scotland, buyers could save £75,335 (20%) by choosing EH11, covering Gorgie and Stenhouse, instead of neighbouring EH3, which includes central Edinburgh and the West End.
In Wales, crossing from CF64, covering Penarth, Dinas Powys and Sully, into neighbouring CF63, which includes Barry, could cut the average purchase price by £82,519 (24%).
In Northern Ireland, buyers could save £31,075 (11%) by opting for BT16, which includes Dundonald, rather than neighbouring BT4, covering parts of East Belfast, such as Sydenham, Belmont and Stormont.

Region	Postcode	Areas	Av Price	£ saving	% saving
Eastern England	AL5	Harpenden, Kingsbourne Green	£587,884
	LU1	South Luton and surrounding areas	£351,742	£236,142	40%
East Midlands	NN12	Towcester and surrounding areas	£360,453
	NN11	Daventry and surrounding areas	£300,112	£60,341	17%
Greater London	NW3	Hampstead, Belsize Park and surrounding areas	£778,767
	NW2	Cricklewood, Dollis Hill and surrounding areas	£546,348	£232,419	30%
North East	NE26	Whitley Bay, Seaton Sluice	£304,022
	NE24	Blyth and surrounding areas	£162,075	£141,947	47%
Northern Ireland	BT4	East Belfast (Sydenham, Belmont, Stormont)	£278,143
	BT16	Dundonald and surrounding areas	£247,068	£31,075	11%
North West	WA14	Altrincham, Bowdon and surrounding areas	£403,621
	M31	Carrington, Partington	£280,616	£123,005	30%
Scotland	EH3	Central Edinburgh, including the West End	£374,650
	EH11	Gorgie, Stenhouse and surrounding areas	£299,315	£75,335	20%
South East	KT6	Surbiton, Tolworth	£625,840
	KT9	Chessington, Hook	£453,441	£172,399	28%
South West	BS8	Clifton, Hotwells and surrounding areas	£510,864
	BS20	Portishead, Pill	£385,281	£125,583	25%
Wales	CF64	Penarth, Dinas Powys, Sully	£342,753
	CF63	Barry (including Cadoxton and Barry Docks)	£260,234	£82,519	24%
West Midlands	CV32	Leamington Spa (north) and surrounding areas	£392,988
	CV35	Wellesbourne, Kineton and surrounding areas	£343,030	£49,958	13%
Yorkshire and The Humber	YO23	York South Bank and surrounding areas	£378,295
	YO8	Selby and surrounding areas	£243,001	£135,294	36%

Why it pays to look beyond the most sought-after areas

While neighbouring postcodes won’t always be directly comparable, this research clearly demonstrates that it can be a wise move to broaden the search beyond the ‘must-have’ locations. Doing so may open up a wider choice of homes within budget.

This can be especially helpful if you’re a first time buyer struggling to save a deposit while paying high rent.

Could buying next door affect your mortgage?

Buying one postcode over could reduce the cost of your new home. A lower purchase price could mean:

A smaller deposit – you’ll need less cash upfront
Lower monthly mortgage repayments – because you’re borrowing less
Access to better mortgage deals – a lower loan-to-value (LTV) may enable you to unlock more competitive interest rates
Potentially lower stamp duty – if the property falls into a lower band, this could reduce your stamp duty bill

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Stay close without paying a premium

Extending your house-hunt to neighbouring areas could not only make buying a home more affordable, but also allows you to stay close to the transport links, jobs and amenities that attracted you to the location in the first place.