Data from Defaqto showed that average home insurance premiums fell by 0.7% during Q1 of this year and are down by 1.5% over the last two quarters. On an annualised basis, Defaqto said home insurance premiums were 9.9% lower than they were in March 2025.

Frances Luery, product manager at Defaqto, said: “The home insurance market is clearly approaching a point of stability. While premiums are still edging down overall, the small movements we’ve seen in recent months suggest that insurers have largely recalibrated their pricing following the sharp adjustments of the past two years.

“What’s interesting is that, despite the average continuing to fall slightly, many of the largest providers are now increasing prices. This indicates that competitive dynamics are shifting, with smaller or more agile players continuing to drive down averages.”

Luery said the market seemed to be finely balanced and that external pressures such as weather-related claims or inflation on repair costs may prove to be decisive factors on pricing during the rest of the year.