Average home insurance premiums moved -0.2% in July according to Pearson Ham Group’s Premium Price Index for the month. They now sit at £416, which is still 29% higher than at the same time last year. Pearson Ham said the dip may be the start of a more sustained softening in the market.

Stephen Kennedy, director at Pearson Ham Group, said: “These findings mark a significant shift in the home insurance market, offering a glimmer of hope for homeowners and renters across the UK who have faced escalating premiums.

“While the reduction is modest at -0.2%, it signifies a potential alignment of home insurance pricing trends with those seen in motor insurance, which has been on a consistent decline since the first quarter of the year. This trend could provide much-needed financial relief and stability to policyholders in the coming months.”