Swap fashionable postcodes for untrendy neighbours to slash 47% from house prices

By LUCY EVANS, SENIOR MONEY REPORTER Buyers on the hunt for a home in a fashionable postcode can save as much as 47 per cent – by looking in the area next door. House hunters can slash up to hundreds of thousands of pounds from the purchase price of their home by looking in areas neighbouring the most expensive locations across the country, fresh research from Lloyds Bank reveals. It looked at the most expensive areas in each region across the country and then looked at the cheapest neighbouring postcode that shares its border. Buyers are currently grappling with sky-high house prices, averaging £271,000 across the country, which has dented affordability and pushed many households away from their dream property. However, there's also been a rise of postcode envy, a term used to describe a desire to live in a prestigious address. But families after these stylish neighbourhoods could save 28 per cent on average by looking in less sought-after areas right next to chichi postcodes - with some able to cut the purchase price by 47 per cent.  Here's where you can make the biggest savings. Wellesbourne, West Midlands, offers cheaper homes than trendy Leamington Spa The North East region's most expensive location is NE26, which covers scenic Whitley Bay and Seaton Sluice in North Tyneside. Homeowners can enjoy the beautiful St Mary's Lighthouse and a Blue-Flag winning beach – but they must pay a hefty £304,022 for the privilege. However, if they instead shift their house hunt to NE24, which includes port town Blyth, they can snap up a property for £162,075 – a £141,947, or 47 per cent, saving. Of course, the area won't be exactly the same, but buyers will be just a 17-minute drive from the exclusive Whitley Bay. Amanda Bryden, head of mortgages at the bank, says: 'It's easy to focus on the must-have locations when you're searching for a home, but this 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.' Your browser does not support iframes. Buyers can also nab a sizeable discount in the East of England, where the most expensive postcode is AL5 – Harpenden and Kinsbourne Green in Hertfordshire. Homes in this affluent and leafy district typically sell for £587,884. But in nearby LU1 – South Luton – which is just a nine-minute drive away, prices are a more reasonable £351,742. That's a huge 40 per cent discount. It's also the biggest pounds and pence saving on the list at £236,142. Yorkshire and the Humber buyers can save £135,294 if they house hunt in Selby instead of the stylish York South Bank. That's a 36 per cent discount in the £378,295 house price. In the North West, a swap from Altrincham to Carrington in Greater Manchester will save 30 per cent.   Meanwhile in the South West, change Bristol's Clifton for Portishead to slash 25 per cent from your purchase price. Londoners should shun HampsteadIn the Capital, NW3 is one of the most sought-after locations. Hampstead and Belsize Park are two of the most exclusive neighbourhoods in the city – but they are eye-wateringly expensive. Buyers need to spend an average of £778,767 to secure a home in this stylish enclave. However, move to neighbouring NW2 in Gladstone Park – home to Cricklewood and Dollis Hill – and 30 per cent is knocked off the price. Price tags here sit at £546,348 which is £232,419 less than in Hampstead. In the wider South East, a switch from KT6 – Surbiton – to KT9 – Chessington – could knock 28 per cent off a £625,840 house price. While some regions offer bumper savings for the switches, others offer less attractive savings for giving up a fashionable postcode. Take BT4 – East Belfast – in Northern Ireland. Homes here typically go for £278,143. But move to the cheapest neighbouring areas – BT16 – and just £31,075, or 11 per cent, is slashed from the price. The West Midlands is similar. Leamington Spa – CV32 – is the stylish neighbourhood filled with regency-era architecture and beautiful gardens. But homes average £392,988. Instead opt for CV35 – Wellesbourne – to knock 13 per cent off. In the East Midlands, a change from Towcester (NN12) to Daventry (NN11) slashes the price tag by 17 per cent to £300,112. Meanwhile, in Scotland buyers can nab 20 per cent off by switching from Central Edinburgh (EH3) to Stenhouse (EH11). In Wales, the most expensive area is CF24 – which covers seaside town Penarth in South Wales – where homes are some £342,753. However, move to Barry, made famous by sitcom Gavin and Stacey, and you'll spend 24 per cent less with homes sitting at £260,234 on average. Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts. If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible.   This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice. Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you. Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage  How much tax would you have to pay on a home or buy-to-let?