Why Your Pay Packet is Finally Winning the Race, July 2026 Inflation & Affordability Update
Did you know that right now, for every extra £1 things cost at the supermarket compared to last year, the average person is actually earning about £1.50 more in their pay packet? It sounds like a small win, but after the last few years, it’s a bit like finally getting a tailwind after cycling uphill in the rain.
I’m Luke Readings, and I want to share a bold prediction with you: we are entering the "Golden Window" for moving home. While many people are waiting for some "perfect" moment in the future, the numbers right now suggest that the scales are finally tipping back in favour of the shopper, not just the shopkeeper.
The Balancing Act: What is Inflation? Think of inflation as a sneaky "price ghost" that floats around the high street. When the ghost is active, the price of your favourite biscuits, the petrol in your car, and your electricity bill all drift upwards. This month, that ghost is moving at a speed of 3%.
In plain English, that means something that cost you £100 this time last year now costs £103. It’s still going up, but it’s much slower than the frantic pace we saw a couple of years ago. It’s like a car slowing down from 70mph to 30mph—it’s still moving forward, but it’s much easier to keep up with.
The Great News About Your Wages Here is the bit that really matters: while prices rose by 3%, average wages grew by a much nippier 4.6%.
This is what we call "positive spending power." Because your pay is growing faster than the cost of your weekly shop (by about 1.6%), you actually have a little bit more "spare" cash at the end of the month. For the first time in a long while, people aren't just treading water; they’re actually moving forward.
What Does This Mean for Your Next Move? With the Bank of England keeping their main interest rate at 3.75%, things have calmed down. When you combine steady borrowing costs with the fact that people have more "real" money in their pockets, it makes the idea of a bigger mortgage or a first-time purchase feel a lot less scary.
National house prices are currently sitting at an average of £286,209. That’s a 3.9% jump from last year, showing that people are feeling confident enough to bid on homes again.
Bringing it Home to null So, how does this national "vibe" filter down to our streets in null?
In our local area, we have about 218 properties currently for sale, with a local average asking price of £386,775. Because of that extra spending power I mentioned, we’re seeing a "balanced market" in null. This means there isn't a crazy shortage of homes causing bidding wars, but things aren’t sitting stagnant either. On average, it’s taking 234 days to find the right buyer here, as people take their time to use that extra 1.6% of "real" wage growth to find exactly the right home for their budget.
The Bottom Line The "leaky bucket" of the last few years—where money seemed to disappear as fast as you earned it—has been patched up. With wages finally beating the cost of living, the dream of moving to a home with an extra bedroom or a bigger garden is becoming a reality for more of our neighbours.
Things are looking up, and if you've been waiting for a sign to start packing your boxes, this might just be it.