Study shows how much home buyers save by picking less pricey postcodes
A study by Lloyds compared higher value postcodes in different parts of the UK with what it found to be the least costly neighbouring postcodes sitting next to them. Originally reported by the Independent location is still a key criteria for most homebuyers – but those searching for a property could potentially save significant sums by looking next door to less pricey postcodes write Clive Scrivener MRICS and Zah Azeem MRICS, Partners at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
According to Lloyds’ analysis, homes in these neighbouring areas cost 28% less on average, but in many places the gap is significantly wider.
In the North East of England, Lloyds found that in the postcode of NE26, encompassing the seaside town of Whitley Bay, the average price was £304,022.
Next door in NE24, which takes in the town of Blyth, the average price of a home was £162,075 – £141,947 or 47% less than in neighbouring NE26.
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. 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.”
Lloyds said that in London, NW3 is among the city’s most expensive postcodes, covering locations such as Hampstead and Belsize Park. The average house price there was £778,767.
But in neighbouring NW2, including areas such as Cricklewood and Dollis Hill, the average house price was £546,348, buyers here could pay £232,419 less compared to neighbouring NW3 – a saving of around 30%.
The analysis was based on the same mortgage approval data used to calculate the long-running Lloyds house price index. House price figures relate to sales completed in 2025.
For London, prime central locations were excluded from the research due to being small, highly localised areas. However, here in SW19 according to Rightmove the overall average cost of a home is approximately £876,095, with flats averaging around £456,505 and terraced houses reaching £1,002,096.
If you would like to discuss something related to a property valuation specifically a Lease Extension, Freehold Valuations and Market Valuations for disputes, please contact Clive or Zah direct via email at clive@scrivenertibbatts.co.uk and zah@scrivenertibbatts.co.uk or call 020 8947 7040.
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