The latest pricing data from Pearson Ham makes for interesting reading. Big jump in home insurance premiums reflects the extra time, labour and materials costs involved in repairs and renovation. Given that NI is effectively part of the EU regulatory orbit now you would expect the costs to be lower there, as Remainers constantly complain that Brexit has mysteriously added to the costs of all materials in the UK. But the data suggests the reverse is true, it seems that being in the EU means you pay more for Home cover.
Here are the details;
Pearson Ham Group’s latest Premium Price Index for June reveals that home insurance prices have risen on average by 34% compared to 12 months ago, following a 0.7% rise in June, meaning that the average home insurance premium now nears £425². Over the past two years, competitive home insurance premiums have now increased by almost 63%.
While insurance premiums continue to rise significantly above the Consumer Price Index rate of 2%, the rate of growth has slowed compared to the first half of 2024 (H1 2024), when it peaked at 42% in February 2024. Nevertheless, the pricing growth observed in 2024 is unparalleled since 2019³.
The trend in home insurance pricing has varied significantly across regions. Northern Ireland continues to see the largest increases, with a 1.6% rise in June following a 1.5% increase in May, resulting in the highest year-on-year price growth in the UK at 46%. By contrast, the North East and Yorkshire and The Humber saw the lowest increases in June at 0.3%.
Home insurance pricing movements (by magnitude of monthly movement)
| Region | June Movement | 12-Month Movement |
|
Northern Ireland
|
1.6%
|
46%
|
|
South West
|
1.5%
|
34%
|
|
Scotland
|
1.0%
|
37%
|
|
West Midlands
|
0.8%
|
32%
|
|
London
|
0.7%
|
38%
|
|
Wales
|
0.7%
|
34%
|
|
North West
|
0.6%
|
34%
|
|
East Midlands
|
0.5%
|
32%
|
|
East of England
|
0.5%
|
35%
|
|
South East
|
0.5%
|
35%
|
|
North East
|
0.3%
|
33%
|
|
Yorkshire & the Humber
|
0.3%
|
32%
|
By property type, flats saw the largest home insurance price increase in June at 1.8%, although they have seen the lowest year-on-year change at 35%. Detached and semi-detached properties saw the lowest monthly increases for the second month in a row with a 0.5% rise.
Stephen Kennedy, Director at Pearson Ham Group, said:
“The magnitude of the increase in home insurance premiums is significant. Several factors contribute to this trend, not least the extreme weather events and inflation seen in the last year which continue to affect costs. As these factors continue to impact the market, it is likely that we will see sustained pressure on home insurance prices in the near term.”
In contrast to rising home insurance premiums, the motor insurance market has experienced ongoing reductions in pricing, with a further -1.5% decrease in June. This decline has led to a 12-month price movement levelling out at 12%, compared to its peak of 47% in Q4 2023.
Drivers saw a consistent decrease by age in June, with those aged 26 and under experiencing a -1.1% drop in rates, while drivers over 60 saw a larger decrease of -1.8%.
Motor insurance pricing movements by age
| Driver Age | June Movement | 12-Month Movement |
|
Under 26
|
-1.1%
|
12%
|
|
26 – 30
|
-1.3%
|
11%
|
|
31 – 40
|
-1.5%
|
11%
|
|
41 – 50
|
-1.6%
|
10%
|
|
51 – 60
|
-1.6%
|
12%
|
|
Over 60
|
-1.8%
|
15%
|
Notable reductions in June were also observed for cars valued over £20,000, which saw premium decreases of -1.9%. Regionally, the North East and North West experienced the largest reductions in motor insurance premiums across the UK, with a -1.8% decrease in June.
Frances Luery, Product Manager at Pearson Ham Group, stated:
“The reduction in motor insurance premiums is significant and can be attributed to several factors. More importantly, we expect this increased competition among insurers to persist, fostering a much more competitive landscape for drivers.”
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