The Balancing Act on Your Bookshelf, June 2026 Inflation & Affordability Update
Think back to this time last year. Remember how every trip to the supermarket felt like a bit of a gamble? You’d pick up a block of cheddar or a tin of coffee, glance at the price, and wonder if you’d accidentally walked into a luxury boutique. Everything from filling up the family car to paying the window cleaner seemed to be climbing a mountain that had no peak.
But what if I told you that, for the first time in a while, the ground beneath your feet is starting to feel a bit more solid?
The Magic Number: 3%
Currently, inflation (the fancy word for "why things are becoming more expensive") is sitting at 3%. To put that in plain English: if a basket of your favourite treats cost you £100 last June, that exact same basket would cost you £103 today.
Now, three quid might not sound like a lot, but when you multiply that across your mortgage, your car insurance, and the kids' school shoes, it adds up. However, the "did you know" moment here is that back in May, inflation was higher at 3.4%. Prices are still going up, but they are doing so much more slowly than they were a few months ago. It’s like a car finally easing off the accelerator as it enters a 30mph zone.
The "Pocket Money" Test
Here is the really interesting bit: while prices rose by 3%, average earnings actually grew by 3.7% over the last year.
If we look at the "Affordability Signal," we see that real wage growth is positive at about 0.7%. In simple terms, your "pocket money" is finally growing faster than the cost of the sweets in the shop. You’ve got a tiny bit more breathing room at the end of the month. It’s a small victory, but a victory nonetheless!
What does this mean for your next move?
The Bank of England Base Rate is currently holding steady at 3.75%. Because inflation is behaving itself a bit better, it makes the world of borrowing feel less like a rollercoaster.
For those of you thinking about moving or remortgaging, the national average house price is roughly £284,862. We’ve seen a tiny dip of -0.4% in prices over the last year, but 63,500 mortgages were approved this month—the highest we've seen since the start of the year. People are feeling more confident because their wages are finally catching up with the bills.
Bringing it home to null
Now, how does this national "balancing act" affect us here in null? Nationally, things are stabilising, but our local pocket remains a very busy "Seller’s Market." While the national average price is under £300k, our local average asking price is £440,575.
Because people in the wider UK are seeing that 0.7% boost in their real spending power, it keeps demand high for lovely spots like ours. Landlords in null are still facing higher costs, but with wages rising, more tenants and buyers can actually afford to make a move. Homes here are currently flying off the shelves in an average of 145 days, showing that despite the national wobbles, people still really want to live in null.
The Bright Side
The road has been a bit bumpy, but the data tells us we’re heading in the right direction. With your pay packet finally winning the race against price hikes, that dream of a bigger garden or a fresh kitchen is looking a lot more doable.
Whatever your plans are, things are looking up. Give me a shout if you fancy a proper chat about what your place might be worth in today’s world!