Homebuyers in the North East of England could significantly reduce the cost of purchasing a property by expanding their search to include neighboring postcodes, according to new research from Lloyds. The analysis shows that shoppers willing to consider areas adjacent to the region’s most fashionable addresses may save nearly half the price of a home.

Lloyds’ study found that buyers can cut costs by an average of 28% when opting for a property in a postcode bordering the most desirable locations. The most substantial savings were identified in the North East, where moving from the affluent Whitley Bay postcode of NE26 to the nearby Blyth postcode NE24 could reduce prices by 47%.

In numerical terms, the average home price in Whitley Bay’s NE26 stands at £304,022, while in Blyth’s NE24, just a few miles away, the average drops to £162,075. This represents a difference of £141,947 between the two areas, underscoring how postcode boundaries can have a pronounced impact on property valuations, even when local infrastructure like transport, schools, and amenities are shared.

Amanda Bryden, head of mortgages at Lloyds, emphasized that while buyers often focus on highly sought-after locations, considerable value may lie just beyond these borders. She noted that neighboring areas are not always directly comparable, as each possesses unique characteristics, housing types, and local appeal. However, considering nearby postcodes can offer more affordable options without sacrificing proximity to employment centers, transport links, and community resources.

Bryden further pointed out that such a strategic approach could be particularly beneficial for first-time buyers, potentially enlarging the scope of attainable properties and facilitating entry into the housing market. This research highlights the importance of flexibility in location as a factor in managing housing affordability across the UK.