House prices fell for the third month in a row during November, dropping by 1.1%, a report has claimed.

Mortgage lender Halifax said it was the first time prices had fallen for three consecutive months since early 1995, while it was the biggest monthly drop recorded since December last year.

Martin Ellis, Halifax chief economist, said: "The housing market has slowed in recent months as the increase in interest rates between July 2006 and July 2007 has taken effect.

"Higher mortgage repayments and falling real earnings have put pressure on households' income, resulting in a slowdown in both house price growth and activity."

Patrick McCutcheon, of Ilkley-based estate agents Dacre Son and Hartley, said that drop-offs in house prices needed to be taken into consideration and predicted a return to modest growth in the new year.

He said: "Figures for November showed that house prices in Bradford fell by about 0.3 per cent. On a £100,000 house this amounts to £300."