A new analysis by Lloyds shows how affordability improves dramatically just a short distance from the most sought-after postcodes.

The study compared the priciest postcode in each region with the cheapest neighbouring postcode that shares its border.

Across the country, it found that homes in these neighbouring areas cost 28% less on average. In many regions, the gap is even wider – showing how crossing into the next postcode can make a major difference to what buyers pay.

Which area offers the biggest saving?

North East

The biggest saving is found in the North East of England, where the region’s most expensive postcode is NE26. This encompasses the seaside town of Whitley Bay, where the average price is £304,022.

With its long stretch of golden beach and a vibrant leisure and dining scene, it’s no surprise that properties on the seafront here often command a premium.

However, head just next door to NE24 and the savings are significant. At its heart is the industrial port town of Blyth. With an expansive coastline and continued regeneration, the area is increasingly attracting buyers looking for both value and long-term growth potential.

With an average price tag of £162,075, homebuyers in NE24 could pay £141,947 less than in neighbouring NE26, a saving of 47%.

Amanda Bryden, Head of Mortgages at Lloyds: “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.

“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.”

How much can be saved in other parts of the UK?

London

In London, amongst the capital’s most expensive postcodes in this analysis is NW3, covering Hampstead and Belsize Park. It’s one of the capital’s most desirable areas, offering a village feel, green open spaces and elegant period homes. These help push the average price up to £778,767.

But cross into neighbouring NW2 and the price picture changes. Taking in areas such as Cricklewood and Dollis Hill, it offers a more affordable entry point into north-west London, with a mix of period properties and new developments attracting first-time buyers and families alike.

With an average house price of £546,348, buyers here could pay £232,419 less compared to neighbouring NW3 – a saving of around 30%.

Scotland

In Scotland, the most expensive postcode is EH3, which covers central Edinburgh, including the West End. Known for its grand Georgian architecture, cultural landmarks and proximity to the heart of the city, homes here come with an average price tag of £374,650.

However, head just beyond its boundary to neighbouring EH11 and prices become markedly more affordable. Covering areas such as Gorgie and Stenhouse, this part of the city has long been popular with buyers looking for value within easy reach of Edinburgh’s centre, as well as ongoing regeneration and strong local amenities.

With an average price of £299,315, homebuyers here could pay £75,335 less compared to neighbouring EH3 – a saving of 20%.

Wales

In Wales, CF64 is the most expensive postcode, which includes Penarth, Dinas Powys and Sully. With its coastal views, attractive seafront and close links to Cardiff, it remains one of the most sought-after areas in the country, with average prices reaching £342,753.

Just next door is CF63, which covers Barry, including Cadoxton and Barry Docks. The area combines seaside living with more affordable housing, and has seen growing interest from buyers looking for value within commuting distance of the Welsh capital.

With an average price tag of £260,234, buyers here could pay £82,519 less compared to neighbouring CF64 – a saving of around 24%.

Northern Ireland

In Northern Ireland, BT4 is the most expensive postcode. This covers East Belfast, including Sydenham, Belmont and Stormont. The area is known for its leafy residential streets, strong transport links and proximity to both the city centre and the coast, helping drive an average house price of £278,143.

However, head just next door to BT16 and the savings are clear. At its heart is Dundonald, where buyers can still benefit from easy access to Belfast, alongside a range of local amenities and green space, but at a more accessible price point.

With an average property price of £247,068, homebuyers here could pay £31,075 less compared to neighbouring BT4 – a saving of 11%.

How much can be saved in each nation and region?

Here are the biggest savings to be had when buying next door to the nation’s most expensive postcodes.