More Pennies in the Piggy Bank, October 2026 Inflation & Affordability Update
Hi everyone, Darren Medland here. I was chatting with a neighbour near our local high street yesterday, and they asked me a question I hear a lot: "Darren, I’m earning a bit more, but why does it still feel like I’m running to stand still?"
It’s a great question. Right now, in our corner of the world here in null, we are seeing a really busy "seller's market." With 145 homes currently up for sale and about 33 finding new owners every single month, things are moving fast. But to understand why people are feeling more confident about making a move, we have to look at the "invisible tug-of-war" happening in the national economy.
The Invisible Tug-of-War: What is Inflation?
Imagine you go to the supermarket with a £10 note. Last year, that tenner might have bought you a bag of pasta, some milk, bread, and your favourite biscuits. This year, you go back with the same £10, but you have to leave the biscuits behind.
That is inflation. It’s just a fancy word for things getting more expensive over time. Currently, the national inflation rate stands at 3.3%. To put that in plain English: for every £100 you spent last October, you’d need to spend £103.30 today to get the exact same stuff.
It’s a bit like a leaky bucket; if your money just sits there, a little bit drips out every year because it doesn't buy as much as it used to.
The Good News: Your Pay Packet is Winning
Here is the exciting bit. While prices are going up by 3.3%, the average amount people are being paid in their jobs is actually growing by 3.7%.
Did you know that for the first time in a while, your pay is actually growing faster than the cost of your weekly shop? We call this a "positive signal." Because your wages are rising 0.4% faster than the prices in the shops, you effectively have a tiny bit more "spending power" each month. It might only feel like a few extra pounds here and there, but it means the "affordability gap" is finally starting to shrink.
What Does This Mean for Your Home?
The Bank of England has kept the "base rate"—which is the benchmark that affects how much the banks charge you to borrow money—steady at 3.75%. Because wages are rising and the cost of borrowing isn't jumping up, more people are feeling brave enough to look for a new home.
Across the country, the average price of a home is now £288,279. While prices have only edged up slightly by 1.2% over the last year, the number of people getting their mortgages approved (about 54,900 this month) shows that the market is steady and sensible, rather than scary and unpredictable.
Bringing it Home to null
So, how does this national "pay rise" affect us here in null?
Well, when people nationally feel a bit richer, it trickles down to our local streets. In null, the average price people are asking for their homes is £185,888. Because people locally are seeing that 0.4% boost in their real spending power, those monthly mortgage payments feel just a little bit more manageable.
Over the last seven years, homes in null have grown in value by £24,425. That’s a huge win for local families! Whether you are a landlord looking at costs or a first-time buyer trying to save, the fact that pay is finally beating price rises is the best news we’ve had all year.
It means that even though the world feels expensive, we are moving in the right direction. If you’re thinking about moving, the wind is finally at your back.
Stay positive, and I’ll see you around the neighbourhood!