The Tale of the Growing Loaf, July 2026 Inflation & Affordability Update
Hello there! It’s David Lilley-Brown here. I was just looking back at some old receipts from this time last year, and it’s a bit like watching a garden grow—everything is just a little bit taller than it was before. Have you noticed how your weekly shop or a trip to the local cafe feels slightly different today than it did twelve months ago?
I like to think of the property market and our economy like a giant game of "Musical Chairs," but with a twist. Instead of the music stopping, the chairs are actually changing size while we’re trying to sit down. To understand if we can afford a new chair (or a new home), we first have to look at how much our "spending beans" are worth.
What’s this "Inflation" thing all about?
Think of inflation as a tiny "price-gobbler" that nibbles away at what your money can buy. Right now, that rate is sitting at 3%.
Did you know that if you had £100 last year, you’d need £103 today just to buy the exact same stuff? Whether it’s the price of a pint of milk, filling up the family car, or getting a haircut, things are roughly 3% more expensive than they were last July. It’s not a huge leap—in fact, it’s much steadier than the 3.4% we saw back in May—but it’s a constant reminder that the cost of living is always on the move.
The Great News: Your Pay Packet is Winning!
Now, here is the bit that really puts a spring in my step. While prices have gone up by 3%, the average person's pay packet has actually grown by 4.6%.
This is what I call a "Positive Pocketbook Signal." Because your wages are growing faster than the price of your groceries (by about 1.6%), you actually have a little bit more "oomph" in your wallet at the end of the month. You’re essentially gaining ground. After a few years where everything felt a bit tight, we are finally seeing people’s real spending power getting stronger.
What does this mean for your move?
If you’re thinking about moving house, buying your first home, or looking at your mortgage, this is a very encouraging sign. Even though the official bank interest rate (the "Base Rate") is holding steady at 3.75%, the fact that you have more money in your pocket makes those monthly payments much easier to swallow.
Across the country, the average home is now worth about £286,209. That’s a 3.9% jump compared to this time last year. It tells us that people are feeling confident enough to keep buying, even if they are being a bit more careful than they were a few months ago.
Bringing it back to null
So, how does this national "seesaw" of prices and wages affect us here in null?
Even though we are seeing these big national trends, our local patch has its own unique rhythm. In null, the market is what I call "Balanced"—it’s not a mad dash for buyers, but it’s not a slow crawl for sellers either. With the average house here selling for £159,169, our area remains much more accessible than the national average.
Because people in null are seeing that 1.6% boost in their real spending power, it means more of your neighbours are finding they can finally afford that extra bedroom or the garden they’ve been dreaming of. When people feel richer at the supermarket, they feel more confident about putting up a "For Sale" sign.
A Look Ahead
Things are looking much brighter than they have in a long while. With wages beating the "price-gobbler" and the market finding a steady pace, we’re moving into a chapter of much more predictable, sensible growth. If you’ve been waiting for a sign to start planning your next move, this might just be the "green light" you were looking for!