Home insurance prices are increasing due to an impact of government tax rises, according to insurance market research agency Consumer Intelligence.
Home insurance premiums rose fastest for over-50 householders with above-inflation growth of 3.6% to £117 in the year to April 2017, compared with just 1% for under-50s to £124.
Annual premium prices rose by 2% to £121 in the past year, with prices increasing by just 0.2% in the first 3 months of this year.
- the North East (3.3%) and Yorkshire & Humberside (3.2%) saw the biggest increase in premiums over the last year
- Londoners (£144) still pay the most for home insurance premiums.
Consumer Intelligence expects the increase in insurance premium tax (IPT) – from 10% to 12% from 1 June 2017 – will continue to push prices further.
John Blevins, consumer intelligence pricing expert at Consumer Intelligence, said:
“It is worth noting 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%.
“There is no indication prices will come down and new rules making insurers include last year’s premium with renewals may have some impact on new business rates.”
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