Home insurance premiums fell by 12.1% in 2025 amid sustained competition

The average quoted price for a new home insurance policy fell by 12.1% over the course of 2025, according to new data from market research firm Consumer Intelligence.

However, the data, published yesterday (4 February 2026), also revealed that the rate of falls has slowed, with the last three months of 2025 seeing a drop of just 1%.

In absolute terms, the average price of the top five new business quoted premiums fell from £299 in December 2024 to £259 in December of last year.

Regionally, premium prices saw the biggest falls in Wales, dropping by 15.8% over the year, while London and Scotland saw the least change, down 3.3% and 3.2% respectively.

Meanwhile, houses built between 1895 and 1910 saw cover price reduce by 16.2% – the most in the market – while houses built prior to 1895 fell the least – 7.6%.

The recent falls stand in contrast to a longer-term trend of price rises, with quoted premiums currently standing at 45.2% higher than when the index began in February 2014.

High competition

Consumer Intelligence suggested that the sustained price drops had been driven by high levels of competition in the market.

Laura Vas, senior insight analyst at Consumer Intelligence, explained that “in December, three out of four price comparison websites experienced their 2025 peak in the number of providers quoting, following the launch of new products”.

She continued: “Throughout 2025, the number of providers regularly appearing in rank one to five positions increased, indicating heightened competition.

”During Q4 2025, while premiums for combined policies experienced minor deflation, the buildings-only market saw a deeper reduction in premiums at 2.2%. In contrast, the contents-only sector remained stable with a slight increase of 0.1%.

“Noteworthy additions included Churchill Essentials and Urban Jungle Basic, while insurers such as Aviva and Safeguard Bronze reduced premiums on certain price comparison websites.”