UK home insurance premiums have decreased by 5.6% in the last 12 months and by 6.4% since their June 2020 peak, according to a report by data analytics firm Consumer Intelligence.
However, with the country moving towards full reopening, home insurance prices are expected to go up again soon, but not as much as some may expect, the report said.
“The home market is already a very competitive space, which keeps premium increases largely at bay,” said Harriet Devonald, product manager at Consumer Intelligence.
Younger homeowners continue to pay slightly more for home cover than their elders, but the gap is shrinking. A homeowner under age 50 pays an average of £151 for an annual buildings and contents policy, while over-50s pay £134.
Across regions, London has the most expensive average home insurance premium at £202. Only two other areas – South East (£154) and Yorkshire and the Humber (£150) – have premiums higher than the national average of £144.
The North East (£113) remains the region with the cheapest premiums, followed by the East Midlands (£124) and the South West (£130). Premiums fell across all regions, with the largest drops in Yorkshire and the Humber (-7.9%).
Older properties remained more expensive to insure than newer ones, due to the higher cost of claims made by their owners. Older properties’ roofing, plumbing, and wiring are more likely to develop faults, and replacement materials may be expensive to source.
Homes built in the 19th century/Victorian era were the most expensive, typically costing £169 a year to insure. On the other hand, properties built since the turn of the century were the cheapest at £133.
Reductions were seen across all property age segments, and Consumer Intelligence observed the largest decrease in premiums for properties built between 1940 and 1955 (-7.4%) and between 1910 and 1925 (-7.0%).