Has there been a shift in home insurance pricing?
For the first time this year, the UK has seen a slight drop in home insurance rates, marking a significant change in the pricing trend. According to the Pearson Ham Group’s July premium price index, home insurance costs decreased by 0.2%. While this reduction is modest, it signals a potential shift towards more stable pricing after a period of continuous increases. Currently, the average home insurance premium stands at £416, which is still 29% higher than it was last year, however, this drop could indicate that home insurance prices might begin to align with the downward trend seen in motor insurance premiums since the first quarter of 2024.
Regional variations in home insurance costs.
The decrease in home insurance pricing isn’t uniform across the UK, for instance homeowners in the northwest of England experienced the most significant drop at 0.8%, followed by Northern Ireland and the northeast with a -0.7% reduction. Interestingly, Northern Ireland had seen the largest increase in June, so this reversal is particularly noteworthy. Semi-detached homes benefitted the most, with insurance rates for these properties dropping by -0.8%.
According to Stephen Kennedy, director at Pearson Ham Group, these findings suggest a positive shift in the home insurance market. Although the overall reduction is small, it does offers hope that the trend could continue, potentially bringing some financial relief to homeowners and renters who have faced rising premiums.
As home insurance start to align, policyholders may see more stability and potential savings in the months ahead. At Sutcliffe and Co Insurance Brokers, we’re closely monitoring these developments to ensure our clients receive the best possible service. For more information, please contact the Sutcliffe & Co team on 01905 21681 or alternatively email [email protected].