The Long Walk to the Newsagent, September 2026 Inflation & Affordability Update
I was chatting with a neighbour near the park this morning, and we got talking about the "good old days"—specifically, three or four years ago. Remember when a trip to the supermarket didn't feel like a high-stakes heist on your bank account? Back then, we were all reeling from prices jumping up faster than a startled cat.
Today, things feel different. As I walk around chatting with folks about their homes, the conversation has shifted from "How can we afford anything?" to "Are we finally catching up?"
Let’s talk about that word we hear on the news every night: Inflation.
Think of inflation like a slow, invisible leak in your bicycle tyre. You might not notice it the moment you set off, but by the time you get to the end of the road, you’re pedalling much harder just to move the same distance. Currently, that "leak" is sitting at 3.1%. In plain English, that means if a bag of your favourite posh coffee cost you £10.00 this time last year, it likely costs about £10.31 today.
Everything—from filling up the family car to your Sunday morning fry-up—is getting a little bit more expensive. But here is the "did you know" moment that might make you smile: for the first time in a while, your piggy bank is actually growing faster than the prices are rising.
While prices went up by 3.1%, the average amount of money people are taking home in their pay packets went up by 4%. This is what we call Positive Real Wage Growth.
Imagine you’re in a race. Prices are running at one speed, but your wages are running just a little bit faster—about 0.9% faster, to be exact. It’s like having a slight tailwind. It doesn’t mean we’re all suddenly millionaires, but it does mean that for the first time in ages, your "spending power" is getting stronger. You have a tiny bit more left over at the end of the month even after the bills are paid.
So, what does this mean if you’re looking at the property market?
Right now, the bank’s "base rate"—which is basically the fee banks pay to borrow money—is holding steady at 3.75%. Because our wages are finally beating inflation, it’s making the idea of moving house feel a lot less scary.
Across the country, the price people are actually paying for a home is around £287,949. That’s gone up by 1.8% over the last year. Because your wages are growing faster than that (at 4%), homes are technically becoming a little more "affordable" relative to what you earn. It’s like the house is standing still while you’re standing on a step-ladder; it’s getting easier to reach the top shelf.
Bringing it home to null
Now, how does this national "tug-of-war" affect us here in null? Even though the headlines talk about the whole UK, our local corner of the world has its own rhythm.
In null, we are seeing a very busy market—what we call a "seller’s market." This means there are more people wanting to buy than there are houses for sale (we currently have 109 homes on the market). Because everyone’s pay packets are looking a bit healthier, more people in null feel confident enough to put in an offer.
With local sold prices averaging £420,192 over the last year, our area remains a highly sought-after spot. Over the last seven years, homes here have gone up in value by £57,917. That’s a huge amount of extra "wealth" sitting in people's bricks and mortar just by living their lives!
The road ahead looks much brighter than it did a year ago. While things aren't "cheap" again, the fact that your earnings are winning the race against rising prices is the best news we’ve had in a long time.
If you’re wondering what your own home might be worth in this changing market, or just want a jargon-free chat about your options, I’m always around for a brew.
Best,
Matt Camino