Home insurance costs in the UK rose 14% between October and December 2024 compared to the same period in 2023, according to research from Compare the Market.
The average home insurance premium increased to £225 in the final quarter of 2024, up from £197 a year earlier.
While the increase is notable, the rate of growth slowed compared to the July to September period, when home insurance costs rose by 21% year-on-year, according to previous research from Compare the Market.
Homeowners in Northern Ireland saw the highest increase, with premiums rising 31% year-on-year to an average of £451 between October and December. London recorded a 25% rise, followed by the South East (18%), East Anglia (17%), and Scotland (17%).
Premiums in Greater London averaged £357, while those in the South East and East Anglia reached £256 and £249, respectively. Despite these increases, the rate of growth slowed across most regions compared to the previous quarter.
Between July and September, home insurance premiums in Northern Ireland rose 45% year-on-year, while the South East saw a 25% increase, East Anglia 24%, and Scotland 25%.
Homeowners with properties that have experienced flooding continued to pay higher insurance costs, though the rate of increase also slowed. Between October and December, the average premium for previously flooded homes rose 17% year-on-year, from £419 to £489. This represents a lower increase than the 30% rise recorded in the July to September period.
Helen Phipps (pictured above), director at Compare the Market, said the slower increase in home insurance premiums may provide some relief for UK households.
She noted that rising premiums have been partly driven by an increase in insurance payouts, influenced by flooding and higher building costs. She also pointed to inflation and supply chain pressures as factors contributing to expectations of further price increases in 2025.
Phipps advised homeowners to seek savings where possible, adding that comparing policies and prices online can help identify suitable coverage at a competitive rate.
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