The Tug-of-War for Your Wallet, October 2026 Inflation & Affordability Update
What if I told you that even though the price of a loaf of bread or a pint of milk has gone up, you might actually be getting "richer" without realising it? It sounds like a trick, doesn't it? Usually, when we see prices climbing at the supermarket or the petrol pump, we feel like our money is shrinking. But right now, there is a fascinating battle happening behind the scenes of the UK economy that could change how you think about your next move.
Some people might tell you that the property market is cooling down because prices aren't shooting up as fast as they used to. I actually think the opposite is true: we are entering one of the healthiest, most stable chapters for moving home that we’ve seen in years.
The invisible price hike First, let’s talk about inflation. Imagine you have a basket of everything you buy in a year—biscuits, school shoes, electricity, and even cinema tickets. Inflation is simply the measure of how much more expensive that same basket is today compared to last year. Right now, that rate is 3.3%.
Did you know that back in August, that number was only 2.8%? It has crept up slightly, which means that for every £100 you spent last year, you now need £103.30 to buy the exact same stuff. It’s like a tiny, invisible tax on everything you do.
The good news in your pay packet However, here is the exciting part. While prices went up by 3.3%, the amount of money people are actually earning in their jobs went up by 3.7%.
Because your pay is growing faster than the cost of your shopping, you have what I call a "bonus gap" of about 0.4%. This is your Affordability Signal. It means that for the first time in a long time, your purchasing power—your ability to actually buy things—is getting stronger. You aren't just standing still; you are slowly gaining ground.
What does this mean for your move? If you’re thinking about buying a home or moving to a bigger place, this is a big deal. The Bank of England has kept their base rate steady at 3.75%, and because your wages are rising faster than daily costs, the monthly mortgage payment becomes a little bit easier to manage.
Looking at the national picture, the average home now costs £288,279. Prices have nudged up slightly from £287,949 last month, but the pace is calm. We aren't seeing the frantic "bidding wars" that make everyone stressed. Instead, it’s a steady, sensible market where people have more time to breathe and make the right choice.
Bringing it home to null So, how does this national "tug-of-war" affect us here in null?
Even though the national average price is lower, here in null the average price people are asking for is £386,912. We have 222 properties currently for sale, and things are moving at a very steady pace of about 21 sales every month. Because of that positive wage growth I mentioned, people looking to move into null are finding they have a bit more wiggle room in their budgets than they did six months ago.
Over the last seven years, homes in null have grown in value by £43,950. That is a huge amount of extra "hidden savings" that local families have built up just by living in their homes. While the national news might focus on the "cost of living," the reality for our neighbourhood is that we are in a "balanced market"—it isn't leaning too far towards buyers or sellers. It’s just fair.
A look ahead It is perfectly normal to feel a bit nervous when you hear about inflation rising, but remember to look at the whole picture. As long as your pay is keeping pace (or winning the race!), your dream of moving house is becoming more reachable every day. We are moving into the colder months with a very warm outlook for anyone looking to get onto the property ladder.