The Wind in Your Sails, July 2026 Inflation & Affordability Update
What if you woke up tomorrow and realized that for the first time in years, the money landing in your bank account was actually growing faster than the cost of the bread, milk, and petrol you buy every week? It sounds like a dream, doesn’t it? But as we settle into July 2026, that is exactly the story the numbers are starting to tell us.
Before we look at the big national picture, let’s bring it right back to our doorstep in null. Here in our corner of the world, things feel steady. We currently have 310 properties for sale, and the average person looking to buy is seeing asking prices around £325,218. It’s a "balanced" neck of the woods at the moment—not too fast, not too slow—with homes taking about 277 days to find their next owners. But why does the price of a pint of milk in the high street shop matter to someone looking at a semi-detached house in null?
It all comes down to a word we hear a lot: inflation.
Think of inflation as a sneaky "price gremlin." When he’s busy, the cost of filling up your car or doing the weekly shop goes up. Right now, that gremlin is moving at a speed of 3%. This means things are about 3% more expensive than they were this time last year.
But here’s the "did you know" moment that might make you smile: while prices went up by 3%, the average person's pay packet actually grew by 4.6%.
If you do a quick bit of maths, you’ll see your pay is growing 1.6% faster than the prices in the shops. In plain English? You have more "spending power." You aren't just treading water anymore; you’re actually making headway. This is a massive "green light" signal for affordability. It means that even though the Bank of England’s base rate (the tool they use to control the gremlin) is sitting at 3.75%, people are feeling a bit more comfortable about what they can afford to spend on a monthly mortgage.
Nationally, the average home is now worth £286,209. That’s a bit of a jump from last month, as people realise their wages are finally winning the race against rising costs.
So, what does this mean if you’re thinking about moving or checking your mortgage options? It means the "squeeze" is starting to loosen. When your wages grow faster than the cost of living, banks look at you more kindly. They see that you have a bit of extra cushion at the end of the month, which makes it easier for you to prove you can handle a move to a bigger place or a better neighbourhood.
In the local null market, this national trend is like a slow-moving wave reaching the shore. As people across the country feel wealthier because their wages are beating inflation, it gives them the confidence to start looking for their next home. For us in null, where the average sold price over the last year has been £203,479, this boost in "real" money helps keep our local market moving. It means buyers have more in their pocket to meet those asking prices, and sellers can feel more confident that there are people out there who can actually afford to buy.
The best part? We’ve seen inflation stay steady at 3% for a few months now, while pay has kept climbing. It’s a bit like the weather finally clearing up after a long, grey winter. There’s a sense of calm returning to the market, and that’s the best news any of us could ask for.