If you’re thinking about buying your first home, moving, remortgaging, or investing in Stratford-upon-Avon, Warwick, or Leamington Spa in 2026, you’re not alone. These are three of the most desirable places to live in Warwickshire — and even when the wider UK market slows, demand here tends to remain strong.
That said, 2026 will still be a year where mortgage rates, affordability, and buyer confidence play a big role in what happens locally. The mortgage market is improving, but it’s also more nuanced than it was when rates were at rock bottom.
In this guide, I’ll explain what to expect in 2026 — in plain English — and how you can put yourself in the strongest position, whether you’re buying or reviewing your mortgage.
What Will Mortgage Rates Do in 2026?
The big headline is this: 2026 should feel more stable than the last few years.
After a base rate cut in late 2025 (to 3.75%), the market is expecting the Bank of England to gradually reduce rates further during 2026, assuming inflation remains under control.
This matters because mortgage pricing is influenced by expectations of where the base rate is heading — and as those expectations soften, lenders usually become more competitive.
We’ve already seen signs of this, with major lenders cutting rates at the start of 2026, and more expected to follow.
What that means for you
- If you’re buying: affordability may improve slightly as rates ease.
- If you’re remortgaging: you’ll likely see more product choice and stronger competition between lenders.
- If you’re waiting for rates to “crash”: you may be waiting a long time. Rates can fall gradually, but lenders price mortgages based on lots of factors — not just the base rate. (see an explanation of this here Chris Hazell Mortgages)
The key takeaway? 2026 is shaping up to be a better year for mortgage options, but it still pays to get advice early and choose the right product for your plans.
UK House Prices in 2026: Slow and Steady (Not a Boom)
Across the UK, most forecasts suggest we’re likely to see modest house price growth in 2026 rather than big jumps.
Some forecasts suggest around 2%–4% growth nationally, and Rightmove is forecasting around 2% asking price growth.
That’s not explosive growth — but it’s a sign of a market moving into a more balanced, sustainable phase.
For local buyers and sellers, the “feel” of the market will come down to:
- how many properties are available (supply)
- affordability (mortgage rates + income)
- confidence (how secure people feel)
Now let’s look at what this means for Stratford-upon-Avon, Warwick and Leamington Spa specifically.
Stratford-upon-Avon Property Market in 2026
Stratford-upon-Avon often performs differently compared to many other towns, because it attracts a mix of:
- lifestyle movers
- equity-rich buyers
- downsizers
- and commuters (including Birmingham and hybrid London workers)
The area also has limited supply of “premium” housing stock, especially in desirable streets and villages — which helps support prices.
ONS data showed average prices in Stratford-on-Avon district around £395,000 (Oct 2025), with strong annual growth at the time.
What to expect in 2026
✅ Best-performing property types
- detached houses
- character homes
- family homes in strong school catchments
- village properties with parking and gardens
⚠️ More cautious segments
- flats with high service charges
- leasehold properties where buyers are more risk-sensitive
Stratford is likely to remain a resilient market in 2026, and could outperform national averages slightly if mortgage rates continue easing.
Warwick Property Market in 2026
Warwick has a reputation for being consistent and family-focused, with strong appeal thanks to:
- schools
- transport links (M40 corridor)
- employment centres nearby
- and easy access to Leamington and Coventry
It tends to attract buyers who are planning for the long-term — which helps keep things stable.
What to expect in 2026
Warwick is likely to follow national trends more closely than Stratford, with:
- steady pricing
- stable demand for 3–4 bed family homes
- and continued interest in areas offering value relative to neighbouring towns
In simple terms: Warwick should remain dependable, especially for buyers wanting a “forever home” rather than a quick move.
Leamington Spa Property Market in 2026
Leamington Spa is one of the most active markets locally because it attracts:
- first-time buyers
- young professionals
- commuters
- and investors due to strong rental demand
This means Leamington can be more sensitive to mortgage affordability, because many buyers borrow closer to the limit.
When rates improve, demand often returns quickly — especially for:
- 1–2 bed flats (with sensible service charges)
- Victorian terraces
- modern family homes close to transport
What to expect in 2026
If mortgage rates continue to ease, Leamington could see:
- more first-time buyers returning to the market
- improved transaction volumes
- and stronger competition for well-presented properties
However, flats across the UK have underperformed and buyers remain cautious about leasehold, service charges and long-term value — so presentation and pricing will matter.
Mortgages in 2026: What Buyers and Homeowners Should Do
Here’s the part I always emphasise: the best mortgage strategy is personal — and what works for one person won’t always work for another.
But there are a few smart principles to keep in mind in 2026:
If you’re buying;
- Get your mortgage agreement in principle early
- Be ready for affordability checks to remain strict
- Consider what fixing for 2–5 years would mean to you, depending on your plans and comfort level
- Don’t assume the lowest rate is always the best deal — fees and flexibility matter
If you’re remortgaging;
2026 will be a big remortgage year. Many people will still be coming off older deals, so lenders will compete hard for business.
Top tip: you can often secure a deal months before your current mortgage ends, giving you time to benefit from improving rates if the market moves in your favour. (read this blog about when the best time to remortgage is Chris Hazell Mortgages)
If you’re a buy-to-let landlord;
Rates are easing, but affordability checks are still stricter than pre-2022.
The key is choosing:
- the right lender
- the right product structure
- and making sure your investment still works once you factor in tax, maintenance and void periods
Frequently Asked Questions (FAQs)
Will mortgage rates go down in 2026?
Most forecasts suggest they may reduce gradually, but fixed rates depend on swap rates and lender competition — not just the base rate. Chris Hazell Mortgages+1
Will house prices fall in Stratford-upon-Avon, Warwick or Leamington Spa?
Most forecasts suggest modest growth nationally, and these areas tend to be resilient thanks to demand and lifestyle appeal.
Should I buy now or wait?
That depends on your personal plans, affordability, and how long you intend to stay in the property. If you’re ready and buying for the right reasons, timing the market perfectly is rarely realistic.
Final Thoughts: 2026 is About Stability and Smart Planning
2026 looks like a year where the market becomes more predictable, and that’s great news for buyers and homeowners.
Mortgage rates should improve gradually, house prices are expected to rise modestly, and locally — Stratford-upon-Avon, Warwick and Leamington Spa remain some of the strongest places to buy and live in Warwickshire.
If you’re thinking about buying or remortgaging this year, the best step you can take is simple: have a conversation early so you know exactly what’s possible, what it will cost, and what the best options are for you.
Need Mortgage Advice in Stratford-upon-Avon, Warwick or Leamington Spa?
If you’d like help finding the right mortgage deal — whether you’re buying your first home, moving, remortgaging, or investing — I’m here to make the process clear, simple, and stress-free.
Contact us today to discuss your options.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
This blog is for general information purposes only and should not be considered personal financial advice.
Some buy to let mortgages are not regulated by the Financial Conduct Authority.