You are here: Home - News -

Tax hikes and weak pound to drive up home insurance costs

by: Joanna Faith
  • 21/02/2017
  • 0
Home insurance premiums will climb this year thanks to tax rises and the weaker pound, researchers warn.

Average annual premiums have been relatively stable in the past year increasing by 1.8% to £124, according to Consumer Intelligence.

But the research firm warns another hike to insurance premium tax (IPT) – due in June – will send prices soaring.

The government has increased IPT three times in the past 18 months with the most recent rise to 10% taking place in October. From June 2017, IPT will be 12%.

The data shows the October rise was one of the main contributors to premiums rising slightly over the past 12 months.

But the weakness of the pound since the EU Referendum is also contributing to more expensive premiums as higher building material costs are increasing the cost of repairs and premiums depending on which contractors insurers use.

However, despite the predicted price rises, home insurance costs are still 7.8% lower than in February 2014.

John Blevins, Consumer Intelligence pricing expert, said: “Competition for business remains intense, so shopping around remains important as there are plenty of insurers who want your business.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
/IMG/988/124988/hsbc-building.jpg
HSBC sees 62% fall in profits and share price slump

HSBC reported a 62% year-on-year fall in profit before tax from $18.9bn to $7.1bn in its full year results for...

Close