Based on Consumer Price Index (CPI), inflation for June has also been revised downwards to 4.92 per cent from the earlier estimate of 5 per cent, as per the Central Statistics Office (CSO) data released today.
House prices in June rose by an annual 3.0 percent across the United Kingdom as a whole, the weakest increase since August 2013.
The Midlands enjoyed the largest property increases year-on-year with the West-Midlands finding a 5.8% increase and East-Midlands a 4.1% increase in house prices.
The lowest annual growth is in London itself where prices decreased 0.7 per cent year-on-year after a 0.2 per cent May fall - for London this result is the worst since September 2009, when prices dropped 3.2 per cent.
"Clothing inflation, for instance, dropped further in July to -0.4%, from 0.4%, indicating that June's decline wasn't merely due to retailers starting their summer sales slightly earlier than usual", he added.
The average United Kingdom house price was £228,000 in June - £1,000 higher than in May and £6,000 higher than in June 2017. We have recently completed on properties in the East Midlands and East of England where we expect prices to continue to increase above the average for the country as a whole.
Mike Hardie, head of inflation at the ONS, said: "Transport tickets and fuel, along with often erratic computer game prices, drove up costs for consumers".
"Although a little out of date, these numbers represent the most comprehensive survey of United Kingdom house prices".
Annual house price rates of change, 2006 to June 2018.More news: Watch Aretha Franklin's iconic performance at President Obama's 2009 inauguration
The latest inflation figures come just 24 hours after the ONS showed that unemployment in the United Kingdom has fallen to just 4%, a low not witnessed since the early 1970s.
Consumers had also to endure an increase in food and non-alcoholic drink prices, which rose by 2.3 percent.
Estate agent Lee James Pendleton said: 'The most troubling numbers here are easily the growth figures for new builds.
The National Institute for Economic and Social Research, a think tank, said its measure of core inflation, stripping out extreme price moves, fell and looked set to bring inflation down to the Bank of England's 2 percent target within a year.
The average price in Northern Ireland was £133,000, marking an increase of 4.4% over the year.
The annual growth rate of United Kingdom house prices has slowed since mid-2016 and has remained under 5%, with the exception of October 2017, throughout 2017 and into 2018.
'The 9.6 per cent house price growth for new builds is in marked contrast to the cost of homes bought by first-time buyers which have only risen 2.8 per cent over the past year.
While it is taking buyers longer to complete on their homes from 16 weeks previous year to 18 weeks on average.