The Great Tug-of-War: September 2026 Inflation & Affordability Update
Hello there! I’m David Hallas. If you’ve ever watched a group of children playing tug-of-war at a school sports day, you’ll know the feeling of the current UK property market. On one side, we have the "Cost of Everything" pulling hard, and on the other, we have "Your Pay Packet" digging its heels in.
Right now, many people think that because prices at the supermarket are still going up, buying a home must be getting harder and harder. That’s the myth. The reality? For the first time in a while, your paycheck is actually winning the tug-of-war.
The "Hidden Leak" in Your Wallet
Think of inflation like a tiny, invisible leak in a bucket of water. That bucket is your bank account. Even if you don’t touch it, the water level drops because things like a tin of beans, a litre of petrol, or a new pair of school shoes cost more than they did last year.
Currently, that "leak" is at 3.1%. Did you know that at this rate, something that cost £100 last year now costs about £103.10? It sounds small, but it adds up when you’re filling a trolley at the high street supermarket. Interestingly, this is a little higher than the 2.8% we saw in August, meaning the leak has got a tiny bit faster.
Why You’re Actually Getting "Richer"
Here is the exciting bit: while the cost of living is up by 3.1%, the amount of money people are earning is up by 4%.
Because your wages are growing faster than the cost of milk and bread, you have about 0.9% more "spare" money in your pocket than you did last year. In the world of houses, we call this a boost in "spending power." It’s like getting a small bonus every time you go shopping because your money stretches just a little bit further than it used to.
What This Means for Your Next Move
If you’ve been thinking about moving or buying your first home, the stars are beginning to align. The Bank of England has kept the "base rate" (the number that helps decide how much banks charge you to borrow money) steady at 3.75%.
When you combine steady borrowing costs with the fact that people are earning more, it makes the dream of a new front door feel much more reachable. Across the country, the price people are actually paying for a home is roughly £287,949. While prices have crept up slightly from £287,003 in August, they aren't sprinting away from us. It’s more of a gentle walk.
Bringing it Home to null
So, how does this national tug-of-war affect us here in null?
In our corner of the world, we are currently in a "buyer's market." This means there are more homes for sale (243 to be exact!) than there are people ready to buy them. Even though the average price someone asks for a home here is £748,010, the actual price people have been paying over the last year is lower, at £707,789.
Because people in null have that extra 0.9% of spending power we talked about, buyers are feeling a bit more confident. However, because there is plenty of choice, buyers can take their time to find the perfect garden or the right kitchen without feeling rushed.
A Look Ahead
It’s easy to feel worried when you hear talk about the economy, but the big picture for September is actually quite bright. As long as your wages keep growing faster than the cost of your weekly shop, you are slowly but surely getting into a better position to move.
The market isn't a scary monster; it’s just a game of balance. And right now, the balance is tilting back in your favour.