House prices in Woking dropped slightly in July, new figures show.

Figures from the Office for National Statistics show the average Woking house price in the year to July was £448,712 – a 0.8% decrease on June.

The picture was similar to that across the South East, where prices decreased by 1.3%.

The drop in Woking does not reverse the longer-term trend in the area, which has seen property prices in the area grow by 0.8% over the last year.

It means the area ranked 40th among the South East’s 64 local authorities for annual growth, with the average price in Woking rising by £3,500 over the past year.

The highest annual growth in the South East was in Tunbridge Wells, where property prices increased on average by 7.9%.

At the other end of the scale, properties in Eastbourne lost 10.4% of their value.

The average UK house price increased by 2.8% in the 12 months to July, slowing from 3.6% in the year to June, the Office for National Statistics said.

Richard Donnell, executive director at Zoopla, said: "Rents and house prices are slowing across the UK as housing demand cools and affordability pressures bite on what people can pay for rent and mortgages.

"This has big implications for home building where weaker demand is holding back investment in growing supply."

David Hollingworth, associate director at L&C Mortgages said: "Mortgage borrowers may well be steeling themselves for another helping of cautious tone and the message that base rate won’t fall until a sustainable path for inflation is clear.

"It’s anticipated that inflation could nudge higher before it eases, so borrowers will have to wait for signs of improvement before they can hope for another interest rate cut.

"Mortgage rates have edged up in recent weeks, as the rate outlook of ‘higher for longer’ has taken its toll on lenders’ funding. Although that hasn’t sent rates sky high, it’s certainly forcing borrowers to make quicker decisions and act quickly to secure a deal."