Featured - ISA allowance
What is the 2024/25 ISA allowance?A new tax-year means a refreshed ISA allowance to allocate. Find out more about the 2024/25 ISA allowance...
Savings
ISAs
Mortgages
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - travel insurance
Travel insurance 2024Discover the best travel insurance policy for your next trip.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Featured - The triple lock explained
Could the value of your state pension rise by more than inflation?
Retirement
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Featured - ISA allowance
What is the 2024/25 ISA allowance?A new tax-year means a refreshed ISA allowance to allocate. Find out more about the 2024/25 ISA allowance...
Savings
ISAs
Mortgages
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - travel insurance
Travel insurance 2024Discover the best travel insurance policy for your next trip.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Featured - The triple lock explained
Could the value of your state pension rise by more than inflation?
Retirement
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
It may have felt like winter lasted forever this year, but despite it being with us for months on end, it was surprisingly mild – which makes the finding that home insurance costs edged up rather unexpected.
That's according to analysis from market research experts Consumer Intelligence, which shows that the average annual home insurance premium has risen by 2% in the last year to stand at £121, while for over-50s it rose by 3.6% (albeit to a slightly lower average of £117).
Prices have remained virtually unchanged over the last three months, edging up by just 0.2% – helped by the mild winter, which meant few claims for storm damage – but the annual rise will be less than welcome, particularly with many trying to keep costs under control.
Tax impact
Typically, milder winters result in fewer claims, which generally leads to lower premiums. However, that hasn't been the case this year – claims may have gone down, but prices have still risen over the year, and much of it can be attributed to Government tax rises.
Insurance Premium Tax (IPT) currently stands at 10%, which is already far higher than its former rate of 6%, before the round of rate hikes started in November 2015. Unfortunately, it's set to go up again next week, rising to 12% on 1 June, and consumers will continue to pay the price.
"The benign weather has helped to keep premiums down, although IPT rates have pushed premiums up by 2% in the last 12 months, and we expect premiums to rise further in June when it increases to 12%," said John Blevins, Consumer Intelligence pricing expert. "There is no indication that prices will come down."
Competitive impact?
Unfortunately, it looks like the only way for prices to go is up, but we can at least hope for some form of competition that could help keep them under control. This could come into the foreground with the new renewal rules impacting the sector – when a provider sends a renewal notice, they have to clearly state what the previous year's premium was alongside the new price, so customers can instantly see whether they're getting a better (or worse) deal.
It's hoped that this will encourage providers to keep premiums in check in an attempt to avoid losing business, therefore enhancing competition and hopefully leading to better prices. However, you still need to shop around – even if your provider doesn't ramp up your premiums too much, it's always worth seeing what else is out there, because you never know if you could get a better deal if you don't take the time to look.
Start the process by using our quote tool to compare home insurance premiums and see if you can make some savings, with or without the tax hike.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.