Home insurance premiums in the UK have seen their steepest annual decline in years, with quoted prices dropping by 13.1% over the past 12 months, according to the latest Consumer Intelligence Home Insurance Price Index. The downward trend has accelerated in recent months, with a 4.8% fall in quoted premiums during the last quarter alone.
The data, which is used by the Office for National Statistics and industry regulators, points to heightened competition among providers as a key driver and closely matches figures from Compare the Market released earlier this week. More than two-thirds of the most competitive insurers cut quoted premiums for combined buildings and contents policies in the past three months, with notable reductions also seen in the buildings-only market.
Consumers are increasingly able to find lower-priced policies: in September 2025, 67.3% of home insurance quotes were under £200, compared to 57.5% a year earlier. The most commonly quoted premium range was between £150 and £199, accounting for 29% of all quotes.
The trend is evident across the UK, with all regions experiencing declines in quoted premiums over both the past year and the past quarter. Wales saw the sharpest annual drop at 16.8%, followed by the East Midlands and West Midlands, while the North East recorded the smallest quarterly decrease at 2.6%. Nine out of 11 regions posted double-digit annual reductions.
The fall in premiums has been broad-based across different customer segments. Households under 50 saw a 13.7% annual reduction, slightly more than the 12.6% fall for those over 50. Properties of all ages benefited, with the largest annual decrease (16.6%) for homes built between 1895 and 1910, and a 15.4% drop for those built between 1985 and 2000.
Despite the recent declines, the long-term view shows that quoted home insurance premiums have risen by 46.7% since Consumer Intelligence began tracking the data in 2014.
The latest figures suggest that competitive pressures are likely to continue shaping the home insurance market in the near term, with providers seeking to retain and attract customers through price cuts. However, the sustainability of these reductions remains to be seen, particularly as insurers continue to navigate claims inflation, regulatory scrutiny, and evolving risk profiles.
|
Region |
Annual Change |
Quarterly Change |
|---|---|---|
|
Wales |
-16.8% |
-6.8% |
|
East Midlands |
-15.6% |
-5.8% |
|
West Midlands |
-15.5% |
-5.8% |
|
Yorkshire & The Humber |
-14.7% |
-6.2% |
|
Eastern |
-14.3% |
-5.0% |
|
North West |
-12.8% |
-4.7% |
|
South East |
-12.7% |
-4.3% |
|
North East |
-12.6% |
-2.6% |
|
London |
-11.4% |
-3.8% |
|
South West |
-8.9% |
-4.7% |
|
Scotland |
-8.9% |
-3.5% |
