Homebuyers in London can save over £232,000 by purchasing a property in a neighbouring postcode, according to an analysis by Lloyds Bank. The study compared the most expensive postcodes in various UK regions with the least costly adjacent postcodes, revealing that homes in neighbouring areas cost 28% less on average, with significantly wider gaps in some locations.
London Postcode Savings
In London, the NW3 postcode—covering Hampstead and Belsize Park—has an average house price of £778,767. By contrast, the adjacent NW2 postcode, which includes Cricklewood and Dollis Hill, averages £546,348. This difference of £232,419 represents a saving of approximately 30%. The figures underscore how crossing into a neighbouring postcode can make homeownership more attainable in a city where affordability remains a major barrier.
National Trends
Beyond London, significant savings are possible across the UK. In the North East, the NE26 postcode (Whitley Bay) averages £304,022, while neighbouring NE24 (Blyth) averages £162,075—a saving of £141,947 or 47%. In Scotland, EH3 (central Edinburgh) averages £374,650, versus EH11 (Gorgie and Stenhouse) at £299,315, saving £75,335 (20%). In Wales, CF64 (Penarth) averages £342,753, while CF63 (Barry) averages £260,234, a saving of £82,519 (24%). Northern Ireland's BT4 (East Belfast) averages £278,143, with BT16 (Dundonald) at £247,068, saving £31,075 (11%).
Expert Comment
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.”
Regional Breakdown
Lloyds provided a full list of savings across regions. In Eastern England, AL5 (Harpenden) averages £587,884, while LU1 (South Luton) averages £351,742, saving £236,142 (40%). In the East Midlands, NN12 (Towcester) averages £360,453, versus NN11 (Daventry) at £300,112, saving £60,341 (17%). In the North West, WA14 (Altrincham) averages £403,621, while M31 (Carrington) averages £280,616, saving £123,005 (30%). In the South East, KT6 (Surbiton) averages £625,840, versus KT9 (Chessington) at £453,441, saving £172,399 (28%). In the South West, BS8 (Clifton) averages £510,864, while BS20 (Portishead) averages £385,281, saving £125,583 (25%). In the West Midlands, CV32 (Leamington Spa) averages £392,988, versus CV35 (Wellesbourne) at £343,030, saving £49,958 (13%). In Yorkshire and the Humber, YO23 (York South Bank) averages £378,295, while YO8 (Selby) averages £243,001, saving £135,294 (36%).
The analysis is based on mortgage approval data from completed sales in 2025, excluding prime central London areas due to their small, highly localised nature.
