Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Housing affordability
Whether people can manage the cost of buying or renting a home.
Key term
What it means
There are several ways to judge whether housing is affordable. You might compare a house price with a year's pay, or see how much of someone's monthly income goes on mortgage payments or rent. For buyers, saving enough money upfront for a deposit can be a separate hurdle. A figure for a whole country or town cannot tell you exactly what a particular household can afford.
Example
A couple may be able to manage the monthly payments on a home but still be unable to buy it because they cannot save the deposit.
Why it matters
Looking only at house prices or only at monthly payments can miss a major obstacle to getting a home.
Related terms
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Consumer Prices Index including housing costs (CPIH)
A UK measure of price changes like CPI, with an added measure of the cost of living in a home you own and Council Tax.
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Deposit to income ratio
A home-buying deposit compared with the buyer's or buyers' yearly income.
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House price to earnings ratio
A house price divided by a year's earnings, showing how many times annual pay the price represents.
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Housing completions
Homes recorded as finished and ready for use during a given period.
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Housing cost burden
The share of a household's income spent on paying for its home.
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Loan to value ratio
A mortgage loan shown as a percentage of the home's value.
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Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
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Social rent
Rent for certain social homes set under special rules, rather than at the going local market rate.
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Keep in the loop
News
Highlights from about the UK economy, the UK government and the UK public sector.
Mortgage relief will have to wait a little longer
Wednesday 4 November 2026
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
Energy bills are going up as winter approaches
Wednesday 4 November 2026
A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
The journey behind your grocery bill
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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