The UK Government has asked the Financial Conduct Authority (FCA) to investigate the causes of surging premium increases faced by residents living in high and medium-rise blocks of flats.

The review, to be conducted in consultation with the Competition and Markets Authority, will also assess a marked restriction in coverage available for multiple-occupancy buildings.

Secretary of State for Levelling Up, Housing and Communities Michael Gove says he has heard from “innumerable leaseholders” and is particularly concerned about premiums jumping more than 100% year-on-year in some cases.

Following the Grenfell Tower tragedy combustible cladding has been removed from 85% of the high-rise blocks found to have it installed and instances of fire in multiple occupancy buildings has decreased, he says.

But Mr Gove says many insurers “seem unwilling” to offer new policies, forcing people to shop in a more limited marketplace with more restrictive terms or less coverage.

“It is clear to me that the insurance market is failing some leaseholders,” he said.

“Understandably, many policyholders do not share the view the market is effectively delivering accessibly priced, widely available insurance. I share that view and do not consider this an acceptable situation.”

FCA has been asked to provide initial feedback within three months and a final report within six months.