The Tug-of-War in Your Wallet, September 2026 Inflation & Affordability Update
Hello there! Anthony Dawson here. I was chatting with a neighbour, Sarah, over the garden fence this morning. She’s been thinking about moving to a place with a bigger kitchen, but she’s worried. "Anthony," she said, "everything just feels so expensive. A loaf of bread, the petrol for my car, even my favourite tea bags—the prices just keep creeping up. Does this mean I can’t afford a new home?"
Sarah isn't alone. We are all feeling that "tug-of-war" in our bank accounts. So, let’s sit down and chat about what’s actually happening with our money right now across the country, and why there is a glimmer of good news hidden behind those scary headlines.
The Balancing Act: The Good News and the Bad News
First, let’s tackle the "bad" news. You’ve likely heard the word inflation on the news. Think of inflation like a sneaky little gremlin that goes into the shops at night and changes the price tags. When inflation is at 3.1%, which is where it sits this September, it means that something that cost you £100 this time last year now costs about £103.10. It’s why your weekly shop feels a bit heavier on the pocket even though the bag is just as full.
But here is the "good" news—and it’s a big one. Even though the price of bread and milk is going up, the amount of money people are taking home in their pay packets is growing even faster. On average, earnings have gone up by 4% over the last year.
Did you know? Because your wages (4%) are growing faster than the cost of living (3.1%), you actually have about 0.9% more "buying power" than you did last year. It’s like running a race where you are slowly but surely overtaking the person in front of you. This is what we call a "positive affordability signal." It means that for many of us, things are becoming a little easier to manage, not harder.
What does this mean for your move?
If you are thinking about buying a home or switching your mortgage, this is a really important moment. The Bank of England has kept the "base rate"—which is basically the fee they charge other banks to borrow money—steady at 3.75%.
Because people are earning a bit more relative to their bills, their confidence is returning. We can see this in the numbers: there were 58,200 mortgage approvals this month. While house prices are rising slowly (up 1.8% over the year to an average of £287,949), they aren't sprinting away from us like they used to. It’s a much steadier, calmer market than we've seen in recent years.
Bringing it home to null
You might wonder how these big national numbers affect us here in null. Well, when people across the UK feel a bit wealthier because their wages are beating inflation, it keeps our local market moving.
In null, we currently have 154 properties for sale, and we are seeing about 40 sales go through every single month. Because we are in a "seller's market" here, demand is high. The average price people are actually paying in our area is £172,749. When national inflation stays under control, it means local buyers have more "wiggle room" in their monthly budgets to afford the home they really want, rather than just the one they can get.
Looking ahead
It’s easy to get bogged down in the price of a pint of milk, but the bigger picture is looking bright. With wages finally winning the race against rising prices, the dream of moving home is becoming a reality for more people every day.
If you’re curious about how much your own home might be worth now, or if you just want to talk about how these changes affect your specific plans, pop in for a cuppa. I’m always here to help you make sense of it all.