House prices in Woking dropped in October, falling more than the average across the South East, new figures show.

Figures from the Office for National Statistics show the average Woking house price in the year to October was £456,450 – a 0.4% decrease on September.

It was below the average across the South East, where prices decreased by 0.3%.

The drop in Woking contributes to the longer-term trend in the area, which has seen property prices in the area suffer a 2.9% annual decline.

It means the area ranked 60th among the South East’s 64 local authorities for annual growth, with the average price in Woking falling by £14,000 over the past year.

The highest annual growth in the South East was in Cherwell, where property prices increased on average by 8.8%.

At the other end of the scale, properties in the Isle of Wight lost 5% of their value.

Across the UK, average house prices in October were in line with the month before, but have jumped 3.4% over the past year.

Separate figures from the ONS show the Consumer Prices Index (CPI) inflation rose to 2.6% in November, from 2.3% the previous month.

Sticky inflation is fuelling expectations that Bank of England policymakers will opt to keep the base rate on hold at 4.75% this week.

David Hollingworth, associate director at L&C Mortgages, said: "Mortgage borrowers shouldn't expect to see much change because of today’s figures.

"Further base rate cuts are expected next year but the Bank of England has played a consistent line that those reductions are more likely to be slow and steady in pace."

He said mortgage rates "edged higher" in recent months after concerns over inflationary pressure following the Budget.

"Those increases have calmed as the market has found its level and an increasing number of lenders have been able to make some reductions to fixed deals. This has helped to nibble away at fixed rates rather than slash them and I’d expect more stability in rates as we head into the festive period," he added.

The "nil rate" stamp duty band for first-time buyers is set to reduce from £425,000 to £300,000 from April. Stamp duty applies in England and Northern Ireland.

Jeremy Leaf, a north London estate agent, said this reduction is fuelling more first-time buyer activity which will have a positive impact on the market.

"However, the prospect of mortgage rates, as well as now inflation, staying higher for longer will mean no more than a steady improvement in activity in early 2025," he added.

Nick Leeming, chairman of estate agent Jackson-Stops, said: "Whilst there is an understandable focus on enabling first-time buyers to get on to the property ladder from the industry, attention must also be paid to older homeowners to incentivise downsizing and improve market fluidity.

"As well as downsizers and first-time buyers, we expect to see more buying decisions being motivated by the strong competition for school catchment areas following wider policy changes."