Lloyds finds up to 47% cheaper UK homes in nearby postcodes

Homebuyers across the United Kingdom could save tens or even hundreds of thousands of pounds by purchasing a property in a neighbouring postcode rather than a more expensive adjacent area, according to new research from Lloyds Bank. The analysis, based on mortgage approval data from sales completed in 2025, found that homes in postcodes next to the most sought-after locations are on average 28 percent cheaper, with savings reaching as high as 47 percent in some regions.

The most significant potential saving was identified in the North East of England. In the NE26 postcode centred on Whitley Bay, the average property price is 304,022 pounds. Just next door in the NE24 postcode covering Blyth, the average price drops to 162,075 pounds, representing a saving of 141,947 pounds or 47 percent. In London, where affordability is a major challenge, buyers could save around 30 percent by looking beyond the capital's priciest areas. The average home in the NW3 postcode, covering Hampstead and Belsize Park, costs 778,767 pounds, while in neighbouring NW2, which includes Cricklewood and Dollis Hill, the average is 546,348 pounds, a difference of 232,419 pounds.