Homeowners across the UK are facing sharp increases in the cost of buildings insurance, with new data from Go.Compare showing a 25% year-on-year rise in average premiums. The cost of buildings cover has jumped from £167 in Q1 2024 to £208 in Q1 2025.
The home insurance price index also revealed that the cost of combined buildings and contents cover has risen more modestly, increasing by 4% to £232 over the same period. Meanwhile, contents-only policies remain unchanged at an average of £63.
Nathan Blackler, home insurance expert at Go.Compare, said: “This rise in the cost of buildings insurance won’t be welcome news to homeowners, but also won’t come as a surprise. The 25% increase in the last year is a result of a few things – we’ve seen an increase in extreme weather, a rise in inflation, and rebuilding costs going through the roof.”
Premiums continue to vary significantly based on property size and region. The latest figures show that the average cost of combined home insurance increases with property size, ranging from £175 for a one-bedroom property to £433 for homes with five or more bedrooms.
Regionally, homeowners in Northern Ireland are paying the most for home insurance, with a median combined premium of £424. In contrast, the North East is the most affordable region, with an average cost of £184.
Blackler added: “There are a whole host of factors which can affect the cost of your policy – some of which cannot be changed, but there are also things you can do to make sure you are getting a policy that is right for you at the best price. For example, paying annually instead of monthly could help bring the cost down, as insurers often add interest to monthly payments. If you are opting for both buildings and contents insurance, it may be worthwhile going with the same insurer as they will likely offer a discount for purchasing both.”
