Quoted home insurance premiums in the UK continued to decline over the past year, driven by growing competition and increased product availability, according to the latest Consumer Intelligence Home Insurance Price Index.
Average quoted prices dropped by 7.9% in the 12 months to June and by 3.9% in the most recent quarter. The report noted that 75% of the most competitive quotes in June 2025 came from nine insurance providers, up from six in the same period a year earlier.
Premium ranges most commonly fell between £150 and £199, with 29% of quotes within that band. Consumer Intelligence reported that 62.5% of consumers obtained quotes below £200 in June, an increase from 56% a year earlier.
Laura Vas, senior insight analyst at Consumer Intelligence, said some insurers had made notable price reductions in the contents-only segment, though premiums for buildings-only policies remained more stable.
“The market saw its first new product on price comparison websites since January, with Sheilas’ Wheels Essentials launching in June. There is a greater array of choice for consumers - 75% of the best prices in the market came from nine brands in June 2025, up from six in the previous year,” she said.
Since Consumer Intelligence began tracking data in February 2014, quoted home insurance premiums have risen by 54.2%.
Despite the recent fall, premiums had previously surged during 2024, with Consumer Intelligence reporting a 10.5% increase in average quotes over that year alone. The latest drop in prices partially reverses those earlier gains but does not erase the broader trend of inflation-driven growth in household cover.
Pearson Ham Group also observed an 8% year-on-year drop in quoted premiums for home insurance as of May 2025. However, it reported that average prices were still 23.6% higher than in mid-2023, suggesting that although competitive pressure is pushing premiums down, overall levels remain elevated when compared to a longer historical baseline.
Quoted premiums fell across all regions in both the 12-month and three-month periods. The largest annual decreases were observed in the North East (down 10.5%), Wales (down 10.4%), and the West Midlands (down 10.4%). Over the past quarter, the Eastern region recorded the biggest decline at 4.6%, while the South West saw a 3.5% fall despite a more modest 12-month decrease of 2.0%.
Differences by age group were also noted. Households under 50 experienced an 8.4% drop in quoted premiums over the year, compared with a 7.3% reduction for the over-50s. Over the past three months, however, premiums for over-50s fell by 4.3%, while the under-50 segment recorded a 3.4% decline.
Premiums fell across all property age categories during the past year. The most significant annual reductions—each at 9.5%—were reported for properties built between 1925–1940 and 1985–2000. In the last quarter, properties built between 1850–1895 saw the largest decrease in quotes at 4.6%.
Elsewhere, Aon’s mid-year outlook for 2025 noted that home insurance underwriting performance has improved, with several insurers returning to profitability. According to the firm, better combined ratios across personal lines have given insurers more scope to reduce pricing, especially in response to rising competition across online distribution channels.
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