Homebuyers Can Save Up to 47% by Choosing Properties Just Outside Expensive Postcodes

New research from Lloyds has revealed that homebuyers in the UK can save a significant amount of money by choosing to buy a property just outside the country's most expensive postcodes. In fact, those looking just beyond these sought-after areas can save up to 47% on property prices. This study is particularly relevant for first-time buyers or anyone looking to stretch their budget a bit further.

Postcode Price Gap

The research compared the priciest postcode in each region with the cheapest neighbouring postcode that shares a border. On average, homes in these neighbouring areas cost 28% less, which can make a huge difference in what buyers pay. The findings highlight the potential for substantial savings, especially for those willing to look beyond the most coveted locations.

Biggest Savings in the North East

The largest savings were identified in the North East of England. The most expensive postcode in this region is NE26, which includes the popular seaside town of Whitley Bay. Here, the average property price is £304,022, largely due to its attractive beach and vibrant local scene.

However, just next door in NE24, centred around the industrial port town of Blyth, buyers can find homes at a much more affordable average price of £162,075. This means that homebuyers in Blyth could save £141,947 compared to those in Whitley Bay, translating to a remarkable 47% saving. Blyth is becoming increasingly popular, thanks to its expansive coastline and ongoing regeneration efforts, making it an attractive option for those looking for value and potential growth.

Other Regions with Significant Savings

While the North East offers the biggest savings, other regions across the UK also show impressive price gaps:

• London: In NW3, covering Hampstead and Belsize Park, the average house price is £778,767. Crossing into neighbouring NW2, which includes Cricklewood and Dollis Hill, offers a more accessible average price of £546,348. This means a saving of £232,419, or 30%.

• Scotland: The most expensive postcode in Scotland is EH3, which encompasses central Edinburgh. Here, properties average £374,650. Just beyond this area in EH11, which includes Gorgie and Stenhouse, the average price drops to £299,315, allowing buyers to save £75,335, or 20%.

• Wales: The postcode CF64, covering Penarth and its beautiful coastal views, has an average price of £342,753. Next door in CF63, which includes Barry and its docks, the average price is £260,234, resulting in a saving of £82,519, or around 24%.

• Northern Ireland: In BT4, covering East Belfast, the average property price is £278,143. However, moving next door to BT16, which includes Dundonald, the average price is £247,068, allowing for a saving of £31,075, or 11%.

Regional Breakdown of Savings

Here's a quick look at the savings available in various regions across the UK:

"Value can sit right next door"

Understanding these savings is crucial for homebuyers, especially first-time buyers who can feel overwhelmed by the rising costs of housing. The research from Lloyds emphasises that sometimes, just a small change in location can lead to significant financial benefits. It encourages buyers to consider areas that may not be on their radar but offer similar amenities and access to transport links, making them just as desirable as pricier neighbourhoods.

As Amanda Bryden, Head of Mortgages at Lloyds, points out:

"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."

This insight could help many find their dream homes without breaking the bank.