Postcode area
A postcode area is the one or two letters at the start of a UK postcode, such as N or SY. It is the largest level of the postcode system.
A postcode area is the largest unit of the UK postcode system. It is shown by the one or two letters at the very start of a postcode. In N7 6PA the area is N, and in SY1 1AA it is SY.
Each area is usually named after a main town or city, or a part of London. There are 124 postcode areas across the UK, and each one is split into a number of postcode districts.
How areas are named
Outside London, the letters usually come from the name of the main town. B is Birmingham, CF is Cardiff, LS is Leeds and SY is Shrewsbury. In London, the letters show a compass point from the centre, such as N for north, SE for south east and W for west, along with EC and WC for the central districts.
An area takes its name from the town where its mail used to be sorted. It is not a council or county, and its edges do not follow council boundaries.
Areas and the Welsh border
Postcode areas were drawn for delivering mail, not along national borders. Some cross the line between England and Wales. The SY area covers most of Shropshire as well as parts of Powys and Ceredigion. The LD area is almost all in Wales but reaches a short way into England. The CH area covers Chester and also parts of Flintshire.
This matters when a rule differs between the two countries. A home in a Welsh district of the SY area pays Land Transaction Tax, not Stamp Duty Land Tax. Check the country of the address, not just the letters of its postcode.
Why areas are too broad for prices
A postcode area can cover a whole city and the countryside around it. It mixes town centre flats, suburban houses and rural villages, so a single typical price for an area tells you very little about any one street.
For that reason House Price Monitor reports sold prices at postcode district level, with street pages inside each district. A district is small enough to be local but usually large enough to have a steady number of sales. Our guide to comparing streets and postcodes explains how the levels fit together.
Areas outside the data
Scotland and Northern Ireland have their own postcode areas, such as EH for Edinburgh and BT for Northern Ireland. Sales there are not in HM Land Registry's Price Paid Data, which covers England and Wales only.
| Part of the postcode | The letters at the start |
| Example | N in N7 6PA |
| Number in the UK | 124 |
| Splits into | Postcode districts |
| Follows council boundaries | No |
Related terms
Postcode district · Postcode sector · Postcode unit · Price Paid Data · Land Transaction Tax