This is according to new research from Lloyds, which shows that homebuyers can make huge savings by simply looking beyond the boundaries of Britain’s most desirable postcodes.
Take the North East of England as an example. Here it is the NE26 postcode in the seaside town of Whitley Bay that commands some of the highest prices in the area.
And it’s no wonder: with long stretches of golden beaches, vibrant leisure and dining options, the average property price is £304,022.
But if you head off the NE24 to the industrial port town of Blyth you can still enjoy the extensive coastline, the area is under renovation and the typical property price tag is a much more affordable £162,075.
That’s £141,947 less than neighboring NE26 – a saving of 47%.
According to Lloyds, this example shows the most extreme examples of how the postcode shift can work to the advantage of buyers.
But significant savings are possible across Britain. In the south east of England, Surbiton has become almost iconic as a suburban oasis, made famous by the 1970s sitcom The Good Life. But a typical house here in the KT6 postcode costs £625,840.
However, Chessington, which is just a stone’s throw away, offers an average property price of £453,441 – a difference of £172,399 or 28%.
Amanda Bryden, head of mortgages at Lloyds, said: “It’s easy to focus on the ‘must-have’ locations when looking for a home, but this research shows just how much value can be found next door.
“Of course, adjacent areas are not always directly comparable and each have their own character, housing stock and local appearance.
“But in many parts of the country, looking beyond the most desirable 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 can make a big difference – not just in getting on the ladder, but also in what kind of real estate is within reach.”
How much can be saved in other parts of Britain?
Scotland
The most expensive postcode according to Lloyds is EH3, which covers central Edinburgh including the West End. An area characterized by grand Georgian architecture, cultural attractions and proximity to the heart of the city. Houses here cost an average of £374,650.
Head just beyond the border to neighboring EH11 and prices become considerably more affordable. Gorgie and Stenhouse homes have typical prices of £299,315 – that’s £75,335 less compared to neighboring EH3 – a saving of 20%.
Wales
CF64 is the most expensive postcode, including Penarth, Dinas Powys and Sully. Thanks to the coastal views, attractive coastline and close links to Cardiff, average prices are £342,753.
Jump next to Barry, including Cadoxton and Barry Docks, and the average price tag is £260,234, meaning buyers here can pay £82,519 less compared to neighboring CF64 – a saving of around 24%. Correctly.
Northern Ireland
BT4, which covers East Belfast including Sydenham, Belmont and Stormont, is the most expensive postcode in Northern Ireland. Known for its leafy residential streets, strong transport links and proximity to both the city center and the coast, the average house price is £278,143.
However, BT16, centered on Dundonald, has a typical house price of £247,068. That’s £31,075 less compared to neighboring BT4 – a saving of 11%.