Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Lloyds Finds Major Price Gaps Between Neighbouring UK Postcodes

Homebuyers could save up to 47% by purchasing in a postcode neighbouring the UK's most expensive areas, according to new research from Lloyds. The study highlights significant price differences between the priciest postcodes and their immediate neighbours across the UK.

Lloyds compared the most expensive postcode in each UK region or nation with the cheapest postcode sharing its border. On average, homes in postcodes bordering the most sought-after areas cost 28% less. The research suggests that buyers willing to look just beyond prime locations may find substantial savings while remaining close to key amenities and transport links.

The largest percentage saving was found in the North East. In Whitley Bay's NE26 postcode, the average house price was £304,022, while neighbouring Blyth's NE24 postcode had an average price of £162,075. This difference of £141,947 equates to a 47% saving.

In London, the NW3 postcode (Hampstead and Belsize Park) had an average price of £778,767. Its neighbour, NW2 (Cricklewood and Dollis Hill), offered an average price of £546,348, a difference of £232,419 or around 30%.

Eastern England saw the biggest monetary saving. The AL5 postcode (Harpenden and Kinsbourne Green) had an average price of £587,884, while neighbouring LU1 (South Luton) averaged £351,742, a difference of £236,142 or 40%.

In Scotland, central Edinburgh's EH3 postcode averaged £374,650, compared to £299,315 in neighbouring EH11 (Gorgie and Stenhouse), a saving of £75,335 or 20%.

For Wales, CF64 (Penarth, Dinas Powys, Sully) averaged £342,753, while neighbouring CF63 (Barry, Cadoxton, Barry Docks) averaged £260,234, a difference of £82,519 or 24%.

In Northern Ireland, BT4 (East Belfast) had an average price of £278,143, compared to £247,068 in neighbouring BT16 (Dundonald), a saving of £31,075 or 11%.

These findings may be relevant for letting agents and inventory clerks advising clients on property choices, as they highlight the potential for significant savings by considering properties just outside the most expensive postcodes.