The Mystery of the Shrinking KitKat, November 2026 Inflation & Affordability Update
If I told you that having more money in your bank account could actually make you feel poorer, would you believe me? It sounds like a riddle, but it is exactly what’s happening across the UK this November.
I’m Luke Readings, and I want to chat about the "good news / bad news" situation we are all finding ourselves in right now. The good news? Most of us are getting pay rises. The bad news? The price of everything else is running slightly faster than we are.
The Sneaky Thief in Your Shopping Basket Inflation is a fancy word for something we all notice every time we visit the supermarket. It’s the reason that £20 note doesn't seem to buy as many bags of groceries as it did a couple of years ago. Imagine you go to buy your favourite chocolate bar. Last year it cost £1.00. This year, the price tag says £1.04. That’s inflation—the "hidden tax" that makes our money lose its puff.
Right now, the official inflation rate is 3.6%. To put that in perspective, back in the summer, it was down at 2.8%. It has been creeping up steadily for four months now. It means that for every £100 you spent last November, you now need £103.60 just to get the exact same things.
Are Our Piggy Banks Keeping Up? Here is where the "tug-of-war" happens. Most people’s wages have gone up by about 3.1% over the last year. On paper, that’s great! You’ve got more pounds in your pocket. However, because prices went up by 3.6%, you are actually about 0.5% worse off than you were before.
It’s like trying to climb an escalator that is going down. You are moving your legs, but you’re ending up a tiny bit lower than where you started. This "negative growth" means household budgets are feeling a bit of a squeeze this month.
What Does This Mean for Your Next Move? When the cost of milk, bread, and petrol goes up, people have less money left over at the end of the month to put towards a mortgage. This is why we’ve seen the number of people getting new mortgages approved drop from 58,200 in September to 53,400 this month.
The Bank of England has kept their interest rate at 3.75%, which is their way of trying to keep inflation from getting out of control. For you, this means the cost of borrowing money to buy a home isn't getting cheaper right now. If you are thinking of moving or your current mortgage deal is ending, you might find that the "budget" the bank gives you is a little smaller than it would have been in the summer.
Bringing it Home to null So, how does this national "squeeze" affect us here in the null area? When buyers nationwide feel the pinch, they become more careful. In null, we currently have a "balanced market"—which is agent-speak for "it’s fair for everyone."
With local asking prices averaging around £380,000, buyers are looking very closely at their monthly outgoings. Because inflation is nibbling away at their spare cash, they aren't racing to outbid each other like they used to. However, if you’ve owned your home in null for a while, don't worry—prices have grown by over 13% in the last seven years, so you’re still sitting on a very solid nest egg.
Looking Ahead It might feel a bit frustrating that prices are rising faster than pay packets right now, but remember: the property market is a long-distance race, not a sprint. We are in a steady patch where things are finding their level. If you’re patient and keep a close eye on your budget, there are still plenty of opportunities to find a great home.