House prices in the UK fell unexpectedly in June, a key survey showed today. According to HBOS unit Halifax, the average house price fell 1.2 pct in June from the previous month to record an annual gain of 9.4 pct, taking the average house price to 176,509 stg.Analysts had expected the monthly survey from the Halifax to show house prices up a monthly 0.2 pct in June for a 10.1 pct annual gain. Halifax added that house prices increased by 4.5 pct in the first half of 2006 with a 2.6 pct rise during the second quarter. House prices increased in all UK regions during the second quarter with the exception of Wales. The biggest rises were in Scotland, at 5.7 pct, the south west of the UK, at 3.8 pct, and east Anglia at 3.5 pct. The smallest increases were in North West, at 0.2 pct and the north of the UK at 0.9 pct. In Wales prices fell by 0.9 pct reflecting increasing affordability difficulties.The level of activity appears to have moderated in recent months, with the number of mortgage approvals to fund house purchases between March and May down 4 pct compared with the preceding three months. Halifax said that while sound fundamentals, underpinned by a strengthening economy, high employment levels and low interest rates, will continue to support housing demand in the second half of 2006, the annual rate of house price inflation is expected to ease, partly because the corresponding figures last year were strong. High utility bills and council tax rises as well as speculation of higher interest rates, are also likely to moderate demand, causing house price inflation to decline, it added.