Average home insurance premiums rose 0.4% in May, in relation to the previous month and now top £420. The annual rate of increase has dropped from a peak of 42% earlier in the year to now sit at 37%. In contrast, motor premiums were down by 2.5% in May, when compared to the previous month. On an annual basis prices were up by 19%, down from a peak of 47% in Q4 2023.

Commenting on Pearson Ham’s Premium Price Index for May, Stephen Kennedy, director at the business, said: "The continued increases to home insurance premiums in May will add further spending pressure for consumers but this has been primarily driven by the extreme weather events we witnessed last winter combined with ongoing claims inflation.

“We anticipated at the beginning of the year that achieving consistency in home insurance pricing would be challenging for insurers. As we approach the half-year mark, it has proven considerably more difficult than expected.”