Home insurance premiums drop 7.9% in last six months – Consumer Intelligence

Home insurance premiums in the UK have fallen by 7.9% between April and October this year to £136 per annum, according to new data from market research firm Consumer Intelligence.

The latest findings from its Home insurance price index, published today (28 November 2022), confirmed that home insurance premiums for Brits have dropped 2.4% between July and October 2022 and have decreased by a total 3.1% since Consumer Intelligence began collecting this data in February 2014.

These premium drops are not the whole picture, however. Consumer Intelligence reported that between December 2021 and October 2022, home insurance premiums increased by 2.8% - building on the 4.1% uptick that the firm recorded in home insurance premiums between October 2021 and October 2022.

Consumer Intelligence attributed these increases to the implementation of the FCA’s new pricing regulations, which came into force across two deadlines – October 2021 and January 2022. Within these rules, the regulator banned price walking, the practice whereby new customers are offered more competitive premiums than renewing customers.

The firm believes price increases in the home insurance market are set to continue.

Harriet Devonald, product manager at Consumer Intelligence, explained: “We’re beginning to see prices rise in the competitive end of the market.

“Insurers like the popular app-based Getsafe, which had been driving prices down all summer, increased their premiums in October.”

The Home insurance price index tracks the average premiums of the five most competitive home and contents policies available via price comparison websites and key direct brands on a month by month basis.

Local differences

Across the UK, home insurance premiums have increased overall in the last 12 months – the north east (6.7%), Wales (5.1%) and the East Midlands (5%) recorded the largest premium upticks, according to Consumer Intelligence.

Within the last three months, however, London is the only region to see still its home premiums climb (0.6%). All other regions in the UK have experienced dips in the cost of home cover since July 2022, with the West Midlands (4.4%) and the south west (3.9%) benefiting the most from this trend.

The capital therefore remains the most expensive location to buy home insurance, with annual average premiums amounting to £185 for a buildings and contents policy. The south east is the second most expensive region (£141).

The regions where home insurance is the cheapest include the north east (£122), East Midlands (£125) and West Midlands (£128).