Annual house price inflation in the UK continued to edge lower, falling to the 5 pct mark in June from 6 pct the previous month, government data showed today. Analysts polled by AFX News had expected a steep drop to 4.8 pct Figures from the Office of Deputy Prime Minister also revealed that prices rose by 0.8 pct in June from May, a smaller rise than the 1.8 pct seen over the same period last year. The average house price in the UK in June rose to 184,152 stg, up from 182,651 in May. England and Wales saw a fall in annual house price inflation in June, while Scotland and Northern Ireland both saw a rise. In the UK, the annual rate fell to 4.0 pct in June from 5.3 pct in May while in Wales the inflation rate fell to 10.8 pct from 13.8 pct. In contrast, the annual rate in Scotland rose to 14.1 pct from 11.8 pct while in Northern Ireland the rise was to 14.3 pct from 9.3 pct. Within England, house price inflation fell in all regions, with the exception of London, where it rose to from 1.8 pct to 1.6 pct. For first-time buyers, the house price inflation rate fell to 6.7 pct in June from 7.7 pct in May. The average price paid by first-time buyers across the whole of the UK was 150,356 stg in June, while the average price paid by former owner occupiers was 199,450 stg. The figures come on the heels of another survey released overnight, showing that UK property prices rose at their slowest rate in nearly 10 years in the second quarter of 2005.