Prices are expected to rise again as restrictions ease and less people work from home, however

Insurance premiums for UK homeowners have fallen 6.4% since the market’s peak in June 2020 due to the Covid-19 pandemic, according to analysis from market research business Consumer Intelligence.

The company, however, expects premiums in this sector to begin to rise again as the country starts to fully reopen once more.

Harriet Devonald, product manager at Consumer Intelligence, said: “The home market is already a very competitive space which keeps premium increases largely at bay.”

According to the analysis, younger residents continue to fork out slightly more for home cover, but the gap between the two age groups researched continues to shrink – a homeowner that is under 50 typically pays £151 for an annual building and contents policy, whereas an individual aged over 50 now pays £134 for similar insurance.

Regional differences

Considering regions, London continues to dominate the list of locations where residents pay the most for home insurance (£202).

The south east (£154) and Yorkshire and the Humber (£150) are the only two other regions where an annual policy costs more than the national average of £144.

The north east remains the cheapest region for home insurance, with residents paying £133 on average, followed by the East Midlands (£124) and the south west (£130).

Yorkshire and the Humber (-3.6%), the West Midlands (-2.9%) and the north west (-2.6%) all saw large declines in home insurance premiums over the last three months.

Yorkshire and the Humber saw the biggest yearly fall of -7.9%, followed by the south east at -6.8%.

Property age impact

Older homes continue to attract higher insurance premiums.

Despite this, properties built between 1940 and 1955 saw the biggest reductions to their premiums in the last 12 months (-7.4%), as well as those built from 1910 to 1925 (-7%).

The cheapest premiums were calculated by comparing the prices offered for 2,100 people by all the major price comparison sites and key direct insurers.