The Ice Cream Race, October 2026 Inflation & Affordability Update
Imagine you are standing at the seaside with a giant cone of vanilla gelato. Now, imagine the sun is beating down, and the ice cream is melting just a little bit faster than you can lick it. That is essentially how "inflation" feels for your bank balance. If the price of your favourite things grows faster than the money you earn, your savings "melt" away.
But here is a bold thought for you this October: for the first time in a long while, your "licking speed" is actually faster than the sun is melting your gelato. Most people think we are still stuck in a bit of a pickle with rising costs, but the numbers tell a much sunnier story for your pocketbook.
The Magic Number: 3.3%
Right now, the official measure of how much things cost—from a loaf of sourdough to a tank of petrol—is up by 3.3% compared to this time last year. It means if you spent £100 on your weekly shop last October, that same basket now costs about £103.30.
Did you know that back in August, that "heat" was only 2.8%? It’s nudged up a little since then, but don’t let that worry you. The real secret is looking at what’s happening to your Friday payday.
Your Payday is Winning
While prices have gone up by 3.3%, the average amount of money people are actually earning has jumped by 3.7%. If we do the simple maths, your "spending power" is growing by about 0.4% every year. It sounds like a tiny amount, but it is a massive deal! It means for every pound the shops take away through higher prices, your boss is giving you back a pound and four pence. You are slowly but surely getting richer in real terms.
What this means for your next move
If you’ve been dreaming of a bigger garden or finally getting your own front door key, this is the "Affordability Signal" we’ve been waiting for. When your wages grow faster than the cost of milk and electricity, the bank sees you as a much safer bet. You have more "wiggle room" left at the end of the month.
The average price of a home in the UK is now £288,279. While that is a little higher than it was in the summer, the pace of growth is actually slowing down—it's only gone up 1.2% over the last year. Because your wages are growing at 3.7%, you are actually gaining ground on the property market. The "house price mountain" isn't growing as fast as your "savings ladder" is climbing!
Bringing it home to null
How does this national news affect us here in our local neighbourhood? In the null postcode sector, we are currently in what we call a "balanced market." That’s just a fancy way of saying there is a fair amount of choice for everyone. With 312 homes currently for sale and 29 finding new owners every month, it’s not a mad scramble, but it’s certainly not quiet either.
For those of you in null thinking about the long term, the growth has been staggering. Over the last seven years, the value of a typical home here has shot up by nearly £75,600 (or 48.7%). Even with national prices wobbling slightly, our local patch remains a sturdy place to call home.
The Bank of England has kept the "base rate" (the number that helps decide how much your mortgage costs) steady at 3.75% for five months now. This stability, combined with your growing wages, means the path to moving home is looking clearer and more predictable than it has in years.
Stay positive—the sun is out, and your ice cream is safe!