Buyers looking to enter the housing market may find significant savings by expanding their search to postcodes adjacent to highly sought-after areas, according to analysis by Lloyds Bank. The study highlights that homes in neighboring, less expensive postcodes are priced on average 28% lower, offering more affordable alternatives for those priced out of prime locations.

The analysis examined regions across the UK where lower-cost postcodes border high-value areas, revealing considerable price differentials. The most pronounced disparity was identified in the North East of England. In this region, the NE26 postcode, which includes the coastal town of Whitley Bay, has average house prices around £304,022. Just next door, in postcode NE24, the average house price drops sharply to approximately £162,075—a difference of 47%.

Amanda Bryden, head of mortgages at Lloyds Bank, emphasized the potential benefits for buyers who look beyond the most popular locations. “Looking just beyond the most sought-after postcodes can reveal more affordable options while still keeping buyers close to the communities that matter to them,” she noted.

This approach could open up opportunities for purchasers who desire access to desirable amenities and community features associated with high-value areas but face affordability challenges. By considering neighboring postcodes, buyers may be able to balance proximity with cost savings.

The data underscores an evolving trend in the housing market, where expanding the geographic scope of home searches can yield significant financial advantages. While prime postcodes often command premium prices, adjacent areas may offer a practical compromise for many prospective homeowners.