Credit, Collections & Insolvency News
Home insurance premiums increased by nearly a third (32%) in the final three months of 2023 compared to the same period in 2022, according to new research from Compare the Market. The average home insurance premiums in the UK jumped by £47 from £146 in the fourth quarter of 2022 to £193 in 2023.
All regions in the UK have been affected by rising home insurance, although some have been impacted more significantly than others. Homeowners in Northern Ireland paid the highest premiums in the fourth quarter of 2023, at £340, and experienced the largest annual increase of 47% from £231 the previous year.
Scotland saw the second-largest increase to its home insurance premiums following Northern Ireland, with prices rising by over a third (36%) year-on-year from £145 in 2022 to £197 last year. East Anglia (34%), Greater London (33%), Southeast England (33%), Southwest England (34%), and Wales (33%) all experienced an increase of around a third.
Greater London was the second-most expensive region for home insurance after Northern Ireland, with premiums rising to £302 in the fourth quarter of 2023, up from £227 the same period last year. Southeast England and East Anglia also ranked among the more expensive regions in the UK, at £213 and £210 respectively.
Northeast England was the most affordable region for home insurance in Q4 last year, at £157 on average, with the region also experiencing the smallest annual increase, at 26%.
| Region | Average premium Q4 ‘22 | Average premium Q4 ‘23 | Increase |
| East Anglia | £157 | £210 | £53 (34%) |
| East Midlands | £139 | £179 | £40 (29%) |
| Greater London | £227 | £302 | £75 (33%) |
| Northeast England | £125 | £157 | £32 (26%) |
| Northern Ireland | £231 | £340 | £109 (47%) |
| Northwest England | £136 | £176 | £40 (29%) |
| Scotland | £145 | £197 | £52 (36%) |
| Southeast England | £160 | £213 | £53 (33%) |
| Southwest England | £136 | £182 | £46 (34%) |
| Wales | £136 | £181 | £45 (33%) |
| West Midlands | £133 | £173 | £40 (30%) |
| Yorkshire and the Humber | £139 | £183 | £44 (32%) |
In the final three months in 2023, the typical cost of insuring a home located near tall trees was £236, in comparison to £191 for a home not near trees – a difference of £45. The disparity has increased by 45% from the £31 difference seen during the same period in 2022. The cost of insuring a property located near tall trees has also jumped by £60, an increase of more than a third (34%) on the £176 reported last year.
| Year | Tall trees | Average premium |
| Q4 2022 | No | £145 |
| Q4 2022 | Yes | £176 |
| Q4 2023 | No | £191 |
| Q4 2023 | Yes | £236 |
Home insurance premiums increased for properties with all types of roof materials in the fourth quarter of last year. Homes with common roof materials have seen significant jumps on the same period last year, including asphalt (27%), concrete (28%), slate (33%), and tile (32%). Homes with thatch rooves have experienced the largest increase of 56%, climbing from £1,272 in the fourth quarter of 2022 to £1,985 in 2023.
| Roof material | Average premium Q4 ‘22 | Average premium Q4 ‘23 | Increase |
| Asbestos | £271 | £302 | £31 (11%) |
| Asphalt | £176 | £223 | £47 (27%) |
| Concrete | £152 | £195 | £43 (28%) |
| Corrugated iron | £203 | £244 | £41 (20%) |
| Shingle | £236 | £308 | £72 (31%) |
| Slate | £152 | £202 | £50 (33%) |
| Thatch | £1,272 | £1,985 | £713 (56%) |
| Tile | £144 | £190 | £46 (32%) |
| Felt on timber | £205 | £251 | £46 (22%) |
The rising cost of home insurance means that many people will likely be looking for savings wherever possible. To combat rising prices, households could save up to £201 by switching their home insurance through Compare the Market.
Ursula Gibbs, Director at Compare the Market said “Home insurance premiums increased across the country in the past year. Prices may have been affected by high inflation driving up the cost of building materials, as well as an increase in home insurance payouts.
“While the impact of rising premiums was seen across all regions, Northern Ireland and Greater London stand out as the most expensive and Northern Ireland and Scotland as the regions with the fastest-rising prices. The threat of turbulent weather also appears to have impacted premiums, as seen by the growing price gap between homes located near tall trees in comparison to those not.
“As premiums rise, it is important that homeowners consider the actions they might be able to take to make savings. By comparing policies online, you can form a better understanding of the different options available to you and potentially find a deal that is more affordable or a better fit for your circumstances.”