Financial Conduct Authority and the Competition and Markets Authority have been asked by the government to “urgently” review the insurance market to leaseholders in high rise blocks that has more than doubled in some cases.

Housing secretary Michael Gove wrote to both bodies saying he is “extremely concerned” that residents in these blocks face “insurance premiums have escalated by over 100% year-on-year, leaving residents with crippling costs. It is clear to me that the insurance market is failing some leaseholders”.

He writes that despite efforts made to remove dangerous cladding from these buildings since the Grenfell Tower fire in 2017, “building insurance premiums have increased dramatically for almost all leaseholders in blocks of flats.

“I am also concerned to hear that many insurers seem unwilling to offer new policies, forcing people to shop in a more limited market place with more restrictive terms or less coverage; in many cases, trapping people with their current provider.

“The market lacks transparency and there is not currently useful data to explain the rationale behind the increasing premiums charged by insurers and the conditions associated with the cover. The role and remuneration of brokers, managing agents and freeholders is also unclear.”

He adds: “Many policyholders do not view the market as effectively delivering accessibly priced, widely available insurance. I share that view, and do not consider this an acceptable situation.”

The letter, addressed to FCA chief executive Nikhil Rath and chief executive CMA Andrea Coscelli, asks their departments to do two things:

* Shed light on the underlying causes of year-on-year price increases

* Assess the causes of the marked restriction in coverage available for multiple-occupancy buildings

Gove has also asked the FCA “to make practical recommendations for measures that industry, the government and regulators could take to achieve the goal of widely available and affordable cover”.

He told both bodies that “given the urgency of relieving the financial pressure on those affected,” he wants their initial feedback within three months, and a final report on his desk inside six months.

Earlier this month, the housing minister warned housebuilding firms that the government is ready to take action regarding the removal of dangerous cladding that still remains on high and medium-sized blocks.

Speaking in the House of Commons, he said firms responsible for manufacturing dangerous cladding and insulation “must pay now, instead of leaseholders”.

He gave the industry until March to come up with a workable plan to cover these costs, or the government would use legislation to force them to act.