House prices in West Devon dropped in September, falling more than the average across the South West, new figures show.

Figures from the Office for National Statistics show the average West Devon house price in the year to September was £296,383 – a 1.6% decrease on August.

It was below the average across the South West, where prices decreased by 0.9%.

The drop in West Devon does not reverse the longer-term trend in the area, which has seen property prices in the area grow by 5.1% over the last year.

It means the area ranked third among the South West’s 26 local authorities for annual growth, with the average price in West Devon rising by £14,000 over the past year.

The highest annual growth in the South West was in Stroud, where property prices increased on average by 5.8%.

At the other end of the scale, properties in Torridge lost 4.4% of their value.

The average UK house prices increased by 2.6% in the 12 months to September, slowing from 3.1% growth in the year to August.

ONS head of housing market indices Aimee North said: "UK annual house price inflation slowed in September with the average UK house price now around £272,000.

"The Yorkshire and the Humber was the English region with the highest house price inflation while the regions with the lowest annual inflation are in the south of England. London is the only region showing an annual fall again."

The house and rental price figures were released as the ONS also said that Consumer Prices Index inflation slowed to 3.6% in October, from 3.8% in September. Some commentators suggested this could pave the way for a Bank of England base rate cut soon, easing costs for some mortgage borrowers.

Sarah Coles, head of personal finance, Hargreaves Lansdown, said the below-CPI inflation increase in house price rises is "difficult news for homeowners, especially those who plan to downsize and cash in on as much property equity as possible".

She added: "However, it’s a real positive for first-time buyers. If they have a competitive savings account, it will be outstripping house price inflation, making it easier for them to build a deposit."

David Hollingworth, associate director at L&C Mortgages, said: "Today’s figures are unlikely to dampen hopes of a base rate cut in December, despite remaining well above the Bank of England’s inflation target."

He added: "The growing belief of a cut coming sooner than previously anticipated has already seen mortgage rates improving. Mortgage lenders have been quick to pass on the improved cost of funds and there’s been successive rounds of fixed rate cuts by most major lenders."