House price growth is set to halve next year as the top end of the London market comes off the boil and property values start to increase at a more uniform rate across the country, Halifax predicts.

Prices are expected to increase by a more modest 3-5% across the UK over the whole of 2015 as the supply of homes for sale will start to match the number of house hunters more closely, it forecasts.

Year-on-year house price growth peaked at 10.2% in July this year and by October the annual rate of growth had fallen back to a weaker rate of 8.8%, with prices now standing at £186,135 typically.

Halifax said that a deterioration in affordability, with signs that buyers are reaching the ceiling of what they can afford to pay, will be a "key factor" in curbing demand for homes, alongside the prospect of interest rates rising at some point next year, pushing up the cost of borrowing generally.

This will help to bring demand from buyers into better balance with the supply of homes for sale. One of the main reasons for the strong growth in property values seen this year was that the number of homes for sale in some areas outstripped the number of buyers entering the market on the back of rising consumer confidence in the economy and improved access to cheap mortgage deals.

London in particular has proved a strong pull for wealthy overseas buyers looking for a "safe haven" to invest their money.

But Martin Ellis, Halifax's housing economist, said there has been a "notable cooling of buyer interest in the capital in the last few months".

He added: "Global economic worries could also reduce demand and activity at the top end of the London market in 2015."

Mr Ellis said he expects to see "a more even regional pattern in house price growth during 2015".

Tighter mortgage lending rules have also acted as a brake on activity, he said. The Mortgage Market Review (MMR) rules, which came into force in April, mean that home buyers and people looking to remortgage have to provide more detailed evidence to prove that they can truly afford their mortgage repayments.

A separate report released by the Intermediary Mortgage Lenders Association (IMLA) suggests that the stricter rules have led to some people aged in their 40s struggling to access a mortgage because of concerns that they could still be paying off their home loan when they reach retirement.

Halifax said that the looming general election next spring could also disrupt activity in the early months of 2015.

But despite the downward pressures on house price growth, the market recovery should continue to be supported by the economy continuing to brighten generally, growth in employment and continued low mortgage rates, it said.

Average earnings are expected to increase more quickly than inflation next year, and this first gain in "real" earnings for several years should help to bolster housing market demand.

Meanwhile, expectations about exactly when the Bank of England base rate will start to increase from its 0.5% low have been pushed back towards the later part of next year. Even when the rate rises start to kick in, they are expected to be small and gradual, in order to help cushion the impact on households.

Mr Ellis said that looking beyond 2015, income growth is expected to start catching up with the pace of house price increases as steady interest rate rises will start to act as a stronger constraint on house prices.

Signs of a recovery in the house building industry should also help to bring the demand for homes and their supply into even better balance in the longer term, which will also curb the upward pressure on prices, he said.

Housing Minister Brandon Lewis said: "This Government is committed to delivering long-term economic stability which is why we've pulled out the stops to get Britain building.

"With 700,000 more homes in England than there were in 2009, including nearly 200,000 affordable homes, housebuilding levels now at their highest since 2007 and up 16% compared to last year.

"On top of this the Help to Buy scheme has supported around 53,000 households in England to get on the property ladder with a fraction of the deposit they would normally require. And our new Rent to Buy scheme will deliver up to 10,000 new homes for renters and give them the option buying that property in the future."