Why Saving for a Rainy Day is Overrated, July 2026 Inflation & Affordability Update
Do you ever feel like you’re running on a treadmill that’s just a tiny bit too fast? You're sprinting to save up for that dream move, but the finish line seems to nudge an inch further away every time you get close. Most people will tell you to sit tight and wait for "things to settle down," but here is a bold thought for July: waiting might actually be the most expensive mistake you make this year.
Right now, the "speed" of our money is changing. You’ve probably heard everyone talking about inflation. If that sounds like a scary word from a textbook, don't worry. Think of it like a sneaky "price gremlin" that goes around the supermarket at night, adding a few pence to the milk, the bread, and the petrol pump. Currently, that gremlin is working at a rate of 3%. That means for every £100 you spent this time last year, you now need £103 to buy the exact same stuff.
But here’s the "did you know" moment that might surprise you: while the gremlin is making your shopping more expensive, your boss is likely helping you fight back.
On average, people across the country are seeing their pay packets grow by 4.6%. If we do the simple maths—take the 4.6% extra you’re earning and subtract the 3% extra things cost—you’re actually left with about 1.6% more "spending power" than you had before. We call this a positive affordability signal. Effectively, for the first time in a while, your wages are finally winning the race against the price of eggs and electricity.
So, what does this mean for your house hunt?
Earlier this year, in March and April, house prices were wobbling around a bit more. But as we hit July 2026, the average price of a home in the UK has settled at £286,209. While that is a 3.9% jump compared to this time last year, the fact that your wages are growing faster than inflation means that moving house is starting to feel a little more "doable" for many families.
The big bosses at the Bank of England have kept the main interest rate at 3.75%. This is the "price of borrowing money," and because it hasn't changed for a few months, it’s giving people the confidence to chat with their banks and get those moving plans off the drawing board. In fact, over 56,000 people got their home loans approved this month!
Now, how does this national "gremlin" affect us here in null? When the whole country feels a bit wealthier because wages are beating inflation, we see that reflected in our local streets. In null, the average price people are asking for their homes is £270,319. Interestingly, the price people are actually paying (based on the last year of sales) is £205,951.
Because we have a "balanced market" in null right now, it’s not a mad scramble where buyers are fighting over every flat and house. It’s a bit more relaxed. However, with 322 properties currently for sale and it taking about 254 days on average to find a buyer, the fact that people have more money in their pockets because of those wage rises is great news for local sellers. It means there are more people in the neighbourhood who can actually afford to put in an offer.
The "price gremlin" might still be lurking in the cereal aisle, but with your pay rising faster than the cost of living, the path to a new front door is looking clearer than it has in years. Keep your chin up—the market is steady, and your pocketbook is getting stronger.