New research from Lloyds Bank shows that homebuyers priced out of fashionable postcodes can save substantially by purchasing in the immediately neighbouring area instead, as house prices remain stretched with a national average of £271,000. The bank compared the most expensive postcode in each UK region against its cheapest bordering postcode, finding that buyers could save an average of 28 per cent, and in some cases up to 47 per cent, while staying close to jobs, transport and amenities.

The largest percentage gap was in the North East, where NE26 (Whitley Bay and Seaton Sluice), averaging £304,022, sits just a 17-minute drive from NE24 (Blyth), where homes cost £162,075 on average, a saving of £141,947 or 47 per cent. The biggest cash saving was found in London's commuter belt, where Harpenden's AL5 postcode averages £587,884 compared with £351,742 in nearby South Luton (LU1), a nine-minute drive away and a 40 per cent discount. Lloyds' head of mortgages, Amanda Bryden, said neighbouring areas are not always directly comparable but can offer more affordable options, particularly for first-time buyers.