The housing market in the UK is heading for a "sharp correction" after prices dropped for the third month in a row, an economist claims.

Halifax said prices fell by 1.1% during November, pushing annual house price inflation down to 6.3%.

This is the biggest dip for 13 months and appears to confirm fears that the housing slowdown is well under way as the market responds to higher interest rates and problems with affordability.

The data comes after Nationwide Building Society said house prices fell by 0.8% during November - their biggest monthly drop for more than 12 years.

And property group Hometrack also said prices in England and Wales fell for a second month during November, easing by 0.2%, while website Rightmove said they dropped by 0.7% in the four weeks to November 10.

The latest figures will increase concerns that the market is now heading for a period of sustained price reductions, but Halifax moved to ease worries by saying a monthly pattern of rises and falls is "typical" in difficult times.

The latest fall means the average cost of a home in the UK now stands at £194,895.

Howard Archer, chief UK and European economist at Global Insight, said: "The third successive, and deeper, fall in the Halifax house price index in November raises concern that the housing market is headed for a sharp correction - particularly as it follows very weak Bank of England mortgage approvals data for October.

"Evidence is currently coming thick and fast that house prices are now cooling markedly in the face of slowing activity, increased affordability pressures and tightening lending practices."

But Mr Archer still believes that although annual house price inflation will ease markedly in the next few months, prices will eventually "flatline" for an extended period.

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."

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