What's happening to UK home insurance premiums?

The average price to insure a home in the UK has gone up from £159 in the first quarter of 2023 to £209 in the same quarter this year, according to Compare the Market data.

All types of properties – from bedsits and bungalows to flats, houses, and maisonettes – posted an increase in insurance premiums in the early months of 2024. Bedsits topped the list as the costliest property type to insure, with average premiums reaching £423, reflecting a significant 41% jump from £301 in the previous year.

Flats, ranking the second-most expensive to insure, saw average premiums climb to £221, up by 36% from £163. Likewise, owners of bungalows, houses, and maisonettes all faced price hikes in their home insurance by over 30%.

Regionally, Northern Ireland experienced the steepest rise in home insurance costs, with premiums surging by 53% from £250 to £383 year-on-year. Significant adjustments were also observed in Greater London and East Anglia, both recording a 36% uptick, closely followed by Scotland and the South East, each with a 35% increase.

In terms of regional costs, following Northern Ireland, Yorkshire and The Humber recorded the second-highest average insurance premiums at £366. This was followed by Greater London at £333; the South East, £233; and East Anglia with £229.

Helen Phipps, director at Compare the Market, commented: “As premiums continue to rise, homeowners should take steps to reduce costs where possible. One of the best ways to try and save money is by comparing prices and types of cover.”

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