Home insurance premiums surge by 32% in Q4 2023

Home insurance premiums saw a year-on-year rise of nearly 32% in Q4 2023 in comparison to 2022.

That was according to Compare the Market data, which revealed that premiums experienced a £47 increase on average – rising from £146 in Q4 2022 to £193 in 2023.

Home insurance premiums increased across all regions in the UK, with Northern Ireland experiencing the highest average premiums at £340 in Q4 2023.

This region also saw the most substantial annual increase – surging by 47% from the previous year’s £231.

Scotland followed with the second largest increase, with prices jumping by over a third (36%) year-on-year, from £145 in 2022 to £197 in 2023.

Several regions – East Anglia (34%), Greater London (33%), Southeast England (33%), Southwest England (34%) and Wales (33%) – experienced an increase of around a third in their home insurance premiums.

Greater London secured the position of the second most expensive region for home insurance after Northern Ireland, with premiums in the capital rising to £302 in Q4 2023 – up from £227 during the same period in 2022.

Southeast England and East Anglia also featured among the pricier regions in the UK, with premiums at £213 and £210, respectively.

Conversely, Northeast England emerged as the most affordable region for home insurance in Q4 of last year, with an average of £157. Additionally, this region experienced the smallest annual increase of 26%.

Helen Phipps, director at Compare the Market, said: “While the impact of rising premiums was seen across all regions, Northern Ireland and Greater London stand out as the most expensive and Northern Ireland and Scotland as the regions with the fastest rising prices.”

Impacted premiums

Compare the Market’s data also showed that the average premium for a home near tall trees was £236, while a home located away from trees amassed an expense of £191, resulting in a £45 difference between properties in proximity to trees and those not.

This gap has expanded by 45%, compared to the £31 difference observed in the corresponding period in 2022.

Additionally, the cost of insuring a property located near tall trees has surged by £60, marking an increase of over a third (34%) from the £176 reported the previous year.

Meanwhile, home insurance premiums rose across the board for properties with various roof materials in Q4 2023.

Significant increases were observed for homes with common roof materials compared to the same period the previous year, including asphalt (27%), concrete (28%), slate (33%) and tile (32%).

Notably, homes with thatch roofs experienced the most substantial increase of 56%, escalating from £1,272 in the fourth quarter of 2022 to £1,985 in 2023.

Phipps said: “Home insurance premiums have increased across the country in the past year. Prices may have been affected by high inflation driving up the cost of building materials, as well as an increase in home insurance payouts.

“The threat of turbulent weather also appears to have impacted premiums, as seen by the growing price gap between homes located near tall trees in comparison to those not.”