Yorkshire home buyers could save £135,000 by choosing a neighbouring postcode
For many home buyers, the search begins with a familiar checklist: the right location, good schools, transport links and a neighbourhood with a strong reputation.
But new research suggests that looking just beyond some of the region's most sought-after postcodes could save buyers well into six figures.
Analysis by Lloyds found that buyers in Yorkshire and the Humber could save an average of more than £135,000 by considering a neighbouring postcode instead of a higher-priced one.
The biggest saving identified in the region was between York's desirable YO23 postcode and neighbouring YO8, which covers Selby and surrounding areas.
According to the bank, the average house price in YO23, which includes York South Bank and nearby neighbourhoods, was £378,295 in 2025. Next door, the average price in YO8 was £243,001 – a difference of £135,294, or 36 per cent.
Edward Hartshorne, managing director of York estate agent Blenkin & Co, believes buyers should avoid becoming too fixated on postcode boundaries. "People need to get over that bit of postcode snobbery and get out there and have a look," he says. "If they are looking in YO23, they need to look in YO8. Simple as that."
The findings come from Lloyds' comparison of higher-value postcodes across the UK with neighbouring postcodes offering lower average property prices. Overall, the bank found homes in these neighbouring areas cost 28 per cent less on average, although the gap was significantly wider in some locations.
Amanda Bryden, head of mortgages at Lloyds, says: "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.
"Of course, neighbouring areas aren't always directly comparable and each will have its own distinctive character, housing stock and local appeal.
"But in many parts of the country, looking just beyond the most sought-after postcodes can reveal more affordable options while still keeping buyers close to jobs, transport links, amenities and the communities that matter to them.
"For first-time buyers in particular, a small shift in location could make a big difference – not just in getting on the ladder, but in what kind of property is within reach."
Edward says buyers today are less influenced by postcode than they have been in the past, but it could still affect demand.
"There is still a bit of postcode snobbery but not maybe as much as there used to be," he says. “I’ve known buyers reject an ‘amazing house’ because it carried an LS postcode rather than a YO postcode.”
He believes encouraging buyers to widen their search beyond a preferred area is an important part of an estate agent's role. "What we are always trying to encourage, and it's what good estate agents should be doing, is to encourage people to look in neighbouring postcodes," he says.
“People are quite fixated but, actually, spread the search a bit and you're more likely to find something that fits the bill."
When it comes to potential savings in neighbouring postcodes, Yorkshire ranked behind only the North East, where buyers could potentially save 47 per cent by moving from Whitley Bay's NE26 postcode to neighbouring NE24, covering Blyth and surrounding areas. There, the average house price fell from £304,022 to £162,075 – a difference of £141,947.
Elsewhere in northern England, buyers considering a move away from Altrincham and Bowdon in Greater Manchester's WA14 postcode could save £123,005 by purchasing in neighbouring M31, covering Carrington and Partington. Average prices fell from £403,621 to £280,616, a saving of 30 per cent.
In London, one of the country's biggest cash savings was identified between NW3, which includes Hampstead and Belsize Park, and neighbouring NW2, covering areas including Cricklewood and Dollis Hill.
The average property price in NW3 was £778,767, compared with £546,348 in NW2, meaning buyers could pay £232,419 less while remaining in an adjoining postcode.
Across the rest of the UK, neighbouring postcode savings ranged from 11 per cent in Northern Ireland to 40 per cent in the East of England.
Northern Ireland recorded the smallest percentage difference in the research, with buyers saving £31,075 by purchasing in BT16 rather than neighbouring BT4 in East Belfast.
The analysis was based on the same mortgage approval data used to calculate the long-running Lloyds House Price Index. House price figures relate to sales completed in 2025.