Parliamentary Search

Written question asked by Ruth Cadbury (Labour) on Friday, 2 June 2023, in the House of Commons. It was due for an answer on Tuesday, 6 June 2023. It was answered by Lee Rowley (Conservative) on Monday, 12 June 2023 on behalf of the Department for Levelling Up, Housing and Communities.

Leasehold: Insurance

Question

To ask the Secretary of State for Levelling Up, Housing and Communities, whether he is taking steps to help decrease the cost of building insurance for leaseholders; and if he will make a statement.

Answer

The Financial Conduct Authority's (FCA) September 2022 report on insurance for multi-occupancy buildings confirmed that premiums have increased, on average, by 125% for the total population of multi-occupancy buildings from 2016-21.

The FCA review also found that the number of insurers prepared to underwrite buildings insurance for multi-occupancy buildings has fallen in recent years. The FCA highlighted that the remaining insurers may have limited competitive incentives, possibly resulting in higher prices for customers. Issues regarding competition in the insurance sector should be reported to the FCA and Competition and Markets Authority.

The Government is taking steps to ensure leaseholder insurance costs are fairer, and more transparent.

The insurance industry is working on a potential scheme to bring down the most extreme premium increases in buildings with identified fire safety issues later this summer, which the Government is monitoring closely.

Secondary information

Type
Written question
Reference
187263
Session
2022-23
Grouped for answer
Yes
Subjects
Buildings Leasehold Insurance
Link
View this Written question on www.parliament.uk