Home insurance premiums set to stabilise

Home insurance premiums are showing signs of stabilising after a period of significant increases, according to new figures*.

Premium income for home and motor insurance has been rising sharply in recent years. In 2023 the growth rate was 8.8%, but in 2024 this slowed to an estimated 7.9% and is expected to keep easing in the coming years.

Easing pressures

Insurers had been grappling with rising claims costs due to inflation, supply chain disruptions and an increase in extreme weather events. However, market conditions have improved thanks to a reduction in interest rates. Premium income growth is therefore predicted to be 5.1% and 4.5% in 2025 and 2026 respectively – significantly closer to the average growth rate of 4% which was recorded between 2010-2019.

Market outlook

Experts predict that the trend of premium stabilisation will continue into 2025, bringing relief to policyholders who have faced steep hikes over the past two years. This shift may also encourage increased uptake of home insurance as affordability improves.

Get covered in 2025

Now is the perfect time to review your cover and ensure your home insurance policy still meets your needs. Contact us for professional advice.

As with all insurance policies, conditions and exclusions will apply

*EY, 2024

21 January, 2025

More news

31 March, 2025

House prices returned to growth in 2024, as half of the UK’s housing stock increased in value by a

Last year, 15 million homes in the UK rose in price by at least 1%, with 6.9 million increasing by £10,000 or more. Nearly six million homes stayed at broadly the same price, with a minimal change of

28 March, 2025

Homeowners in the UK may have noticed that their home insurance premiums have significantly increase

Regional differences Some regions have been harder hit than others, with Londoners experiencing the biggest hike in their home insurance premiums**. For homeowners in the capital, the average home in

26 March, 2025

From 1 April, fewer than 1 in 10 homes will be Stamp Duty free for buyers*.

Stamp Duty thresholds are reverting to previous levels in April, so buyers will soon pay more tax on their house purchases. First-time buyers (FTBs) currently do not pay Stamp Duty on homes up to £42