The Tug-of-War for Your Wallet, October 2026 Inflation & Affordability Update
Think of the economy like a giant game of tug-of-war. On one side, you have the "Cost of Stuff"—the price of a pint of milk, the cost of filling up your car, or that slightly terrifying bill after the weekly shop. On the other side, you have your "Pay Packet." For a long time, the "Cost of Stuff" was winning, pulling everyone toward the mud. But this October, the rope is finally twitching in the other direction.
I’m Daniel Lewis, and while I spend my days helping people move around IG10 3, I spend my evenings looking at the numbers that dictate whether you can actually afford that extra bedroom or a garden for the dog.
Behind the spreadsheets and news reports, there are real stories. I see the young couples who decided to wait another year to buy because the "Cost of Stuff" was too high, and the families who stayed put because their monthly bills felt like a runaway train. But the data this month tells us those stories are starting to change.
The "Price Tag" Problem
Right now, inflation—which is just a fancy way of saying how much prices are rising—is sitting at 3.3%. Did you know that even at 3.3%, prices are still going up? It just means they aren't sprinting away as fast as they were in the summer. If a bag of pasta cost £1.00 last year, it’s roughly £1.03 now. It sounds small, but when every single thing you buy does the same thing, your bank balance starts to feel the pinch.
The Good News for Your Pocket
Here is the bit that should make you smile: average earnings (the money landing in people's bank accounts from work) grew by 3.7% this month.
Let's do the math together. If your pay goes up by 3.7% but the things you need to buy only go up by 3.3%, you are left with a tiny bit of "extra" breathing room—about 0.4%, to be exact. We call this a "positive affordability signal." It means for the first time in a while, your wages are actually beating the rising prices at the supermarket. You’re slowly getting more "oomph" from every pound you earn.
What does this mean for your move?
The Bank of England has kept their base rate—the number that helps decide how much your mortgage costs—at 3.75%. Because your pay is growing faster than prices, the prospect of getting a mortgage or moving house is becoming a little less scary.
Nationally, house prices have stayed very steady, edging up to an average of £288,279 this month. It’s not a wild jump, but a slow, calm climb. People are feeling a bit more confident; we saw 54,900 home loans approved this month. It shows that even though things are expensive, the "tug-of-war" is moving back in favour of the shopper.
Bringing it home to IG10 3
So, how does this national game of tug-of-war affect us here in Loughton? Well, when people nationally feel they have more "spare" money, it eventually ripples down to our leafy streets. In IG10 3, we’ve seen average prices locally sit around £483,376 over the last year.
Right now, it’s what we call a "buyer’s market" in IG10 3. With 81 properties currently for sale, buyers have more choice and a bit more power to negotiate. Because inflation is settling down, local landlords aren't feeling quite as much pressure to hike rents, and people looking to buy their first home in the area can finally see their savings starting to catch up with the market.
We aren't back to the "cheap" days yet, but the momentum has shifted. We are moving toward a time where your hard-earned money goes just that little bit further. And in my book, that’s a win for everyone in the neighbourhood.