Britain's priciest postcodes by region – could you save thousands by buying next door?

Homebuyers could save up to 47% on the price of their prospective home by looking for properties in neighbouring postcodes, according to new analysis from Lloyds.

Those looking to buy a home in some of the UK’s most attractive postcodes are stuck paying a premium for location – but by looking at properties just beyond the boundaries, you could potentially spend hundreds of thousands of pounds less.

On average, properties in postcodes next to the most sought-after locations are 28% cheaper than their counterparts, and in many places this discount is higher, the research shows.

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For example, buyers in the North East can find the biggest savings. House prices in the seaside town of Whitley Bay are £304,022 on average, but ones in the neighbouring port town of Blyth are just £162,075 on average – a saving of 47%, or £141,947.

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.”

While these homes are in less sought-after areas, they have the benefit of being significantly cheaper, making them much more affordable while still being close to prestige areas. This can be helpful, especially for those trying to get onto the property ladder.

Byden added: “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.”

Where in your region has the biggest postcode discount?

Discounts can be found by looking in neighbouring postcodes all across the country.

While the biggest example by percentage is the gap between Whitley Bay and Blyth, you can still find sizable discounts elsewhere in the UK.

For example, people who buy in South Luton and surrounding areas in Eastern England rather than the pricier Harpenden could, on average, save the most amount of money, by changing postcodes.

The average home in Harpenden costs £587,884, while it’s £351,742 in the South Luton LU1 postcode area. This means there’s a postcode price gap of £236,142, or 40%.

Likewise in Greater London, buyers could save £232,419 (30%) by moving to Cricklewood in the capital’s NW2 postcode, rather than NW3, which covers Hampstead, Belsize Park and surrounding areas.

On the other hand, the smallest savings are seen in Northern Ireland. The largest postcode gap is between the BT4 postcode that encompasses East Belfast and the BT16 postcode that covers Dundonald and the surrounding areas.

The average house price in the BT4 postcode is £278,143, compared to £247,068 in the BT16 postcode – a potential saving of £31,075 or 11%.

The table below shows the neighbouring postcodes where buyers can find the biggest savings in each region of the UK.

Source: Lloyds, 27 July