Homeowners have seen the cost of home insurance fall for the first time since Q3 2024, according to Go.Compare’s latest price index.
The average combined buildings and contents premium stood at £229 in Q2 2025, down 1.3% from the previous quarter. While prices peaked at £241 in Q2 2024, the latest figure represents a 5% year-on-year fall.
Both buildings-only and contents-only policies recorded small declines, with buildings-only premiums falling to £199 from £208 and contents-only edging down to £62 from £63. Regional differences remain, with Wales and Greater London recording modest rises.
Greater London’s average cost rose from £333 to £341, while Wales increased from £213 to £214. Northern Ireland remains the most expensive area for cover at £419, while the North East is the cheapest at £183.
Property size continues to affect premiums, with a one-bedroom home costing an average of £170 to insure, compared with £281 for a four-bedroom property.
Despite the downward trend, insurers are warning of potential increases as autumn weather approaches. The Association of British Insurers reported £1.6bn in property claims during Q2, including £322m related to storms, floods and freeze events.
Nathan Blackler, expert at Go.Compare home insurance, said: “It’s encouraging to see premiums come down slightly after months of increases.
“But with autumn storms around the corner, now is the time for households to prepare. The cost of claims has increased in the last quarter by 7% for insurers, so while prices have softened this quarter, they are likely to rise again – particularly for homes in higher-risk areas.
“Shopping around, maintaining your property and bundling cover are three of the most effective ways to keep costs down.”
