The cost of home insurance in the UK increased by 14% year-on-year between October and December last year, according to new research from Compare the Market.
The average home insurance premium climbed to £225 in the final three months of 2024 up from £197 over the same period in 2023.
While the price jump seen between October and December is significant, it represents a further deceleration in comparison to the period from July and September last year, when the average cost of home insurance grew by 21% year-on-year, according to a previous Compare the Market study.
Home insurance premiums increased most significantly for homeowners in Northern Ireland between October and December, climbing by 31% to £451 on average. Following Northern Ireland, the most significant price rises were seen in London (25%), the South East (18%), East Anglia (17%), and Scotland (17%). After those in Northern Ireland, homeowners in Greater London (£357), the South East (£256), and East Anglia (£249) faced the most expensive home insurance bills in the country.
Yet, the year-on-year price increases reported in the last three months of 2024 represents a deceleration for almost all regions in comparison to the period between July and September. For example, premiums grew year-on-year by 45% in Northern Ireland, 25% in the South East, 24% in East Anglia, and 25% in Scotland between July and September last year, according to Compare the Market’s previous research.
| Average home insurance premium by region | |||
| Region | Q4 2023 average premium | Q4 2024 average premium | Q4 2024 increase |
| East Anglia | £213 | £249 | £36 (17%) |
| East Midlands | £182 | £203 | £21 (12%) |
| East of England | £169 | £182 | £13 (8%) |
| Greater London | £308 | £357 | £49 (16%) |
| London | £201 | £252 | £51 (25%) |
| North East | £161 | £177 | £16 (10%) |
| North West | £179 | £200 | £21 (12%) |
| Northern Ireland | £344 | £451 | £107 (31%) |
| Scotland | £201 | £235 | £34 (17%) |
| South East | £217 | £256 | £39 (18%) |
| South West | £185 | £212 | £27 (15%) |
| Wales | £183 | £210 | £27 (15%) |
| West Midlands | £177 | £195 | £18 (10%) |
| Yorkshire and the Humber | £185 | £205 | £20 (11%) |
While homeowners with properties that have been previously flooded continued to pay significantly higher premiums in the final three months of last year, the rise in prices also decelerated in comparison to the period from July to September. The average cost of insuring a home that had previously been flooded between October and December increased by 17% year-on-year from £419 to £489, representing a smaller jump compared to the 30% change seen between July and September.
Helen Phipps, director at Compare the Market, comments: “The slowing rise of home insurance premiums should certainly be welcome news for UK households. Home premiums are being pushed up partly by the high levels of payouts seen in the past year, which have been driven somewhat by flooding and higher building costs.
“The rising number of payouts combined with inflation and strained supply chains are also leading some in the insurance industry to expect UK home premiums to continue rising in 2025.
“In this environment, it is important that homeowners proactively look to make savings where possible. Comparing policies and prices online can be a great way to help find the right product at the right price.”
