Home buyers could save more than £80,000 by looking beyond one of Wales’ priciest postcodes

Nation.Cymru staff/agencies

Home buyers in south Wales could save more than £80,000 on the cost of a property by choosing a neighbouring postcode instead of one of the country’s most expensive areas, according to new research.

Analysis by Lloyds found that the average home in the CF64 postcode, covering Penarth, Dinas Powys and Sully, cost £342,753 in 2025.

Just next door, in the CF63 postcode covering Barry, including Cadoxton and Barry Docks, the average house price was £260,234 – a difference of £82,519, or 24%.

The bank said the findings highlighted how buyers, particularly those purchasing their first home, could make significant savings by widening their search to nearby areas.

Across the UK, neighbouring postcodes were, on average, 28% cheaper than the higher-value areas they bordered, although in some parts of the country the gap was much larger.

Amanda Bryden, head of mortgages at Lloyds, said: “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.”

The biggest postcode price gap identified by Lloyds was in north-east England, where homes in Whitley Bay averaged £304,022 compared with £162,075 in neighbouring Blyth – a difference of almost £142,000.

In London, buyers could save an average of £232,419 by purchasing in the NW2 postcode, covering Cricklewood and Dollis Hill, instead of neighbouring NW3, which includes Hampstead and Belsize Park.

In Scotland, moving from Edinburgh’s EH3 postcode to neighbouring EH11 reduced average house prices by more than £75,000.

The analysis was based on Lloyds mortgage approval data for home sales completed during 2025. Prime central London postcodes were excluded because of their unique housing markets.

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