Defaqto says the 1% increase in June for combined buildings and contents insurance may suggest the market has reached a point of inflexion after two years of falling premiums. Across Q2, Defaqto said the average of the five most competitive quoted premiums was still down by 0.7% with dips of 0.4% in April and 1.2% in May, before the June reversal.

The data shows that home insurance premiums are still 7% lower than in June 2025 and 14.4% down on where they were two years ago. Defaqto predicts the increase in June will pave the way for further increases during the year.

Stephen Kennedy, director at Defaqto, said: “Home insurance pricing reached an important turning point during the second quarter. The overall market recorded another modest reduction, but the 1% rise in June and the increases introduced by most large providers indicate that the direction of travel is changing.”

He added: “We expect home insurance premiums to come under upward pressure in the immediate term. The increases are unlikely to be as pronounced as those seen during the last pricing cycle, when exceptional factors including the pandemic, regulatory change and sharply rising inflation had a major impact on insurers’ costs. This time, any increases are more likely to be gradual and targeted.”