Average combined buildings and contents premiums continued to edge lower last month, according to the latest General Insurance Price Index from Pearson Ham Group, but the scale of monthly falls has now largely flattened.

The data shows that home insurance premiums dipped by around -0.5% in October and just -0.1% in November, a marked slowdown from the roughly -2% monthly declines recorded throughout Q3.

While prices remain materially lower than a year ago, the latest figures point to an easing of the intense competitive pressure that has characterised the market since mid-2024.

Home insurance premiums are now more than -13% lower year on year, reflecting five consecutive quarters of falling prices. However, the near-flat movement seen in November indicates insurers may be reaching the lower limit of how far pricing can be pushed without compromising profitability.

Frances Luery, product manager at Pearson Ham Group, said: “We’re seeing clear signs that the home insurance market is hitting its floor after a prolonged period of intense competition.

“Premiums are now materially lower than they were a year ago, and the minimal change in November signals that insurers have largely recalibrated their pricing following the surge of claims inflation we saw in previous years.

“The key question now is how long this stability can hold. With winter upon us, any uptick in claims could start to put upward pressure on rates. For the moment, however, consumers are benefiting from the most competitive home insurance prices we’ve seen in recent times.”

While competition remains strong, Pearson Ham’s analysis suggests insurers are becoming more selective in how they price risk, moving away from broad-based reductions towards more targeted adjustments. This shift is expected to lead to greater variation in premiums depending on property type, location and individual risk profile.