First-time buyers are increasingly more confident to take on mortgage borrowing as affordability in the housing market is at its strongest for two years, according to new figures.

Alliance & Leicester's Borrowing Monitor found, at the beginning of this year, seven per cent of households said they were thinking of moving, buying a property for the first time or re-mortgaging by mid summer.

Double the number of households than in January said they were planning for a change of scenery before next winter and one in six under 30-year-olds plans to get on the housing ladder this year.

"It's particularly pleasing to see the increased confidence amongst the under 30s. Increased first time buyer activity enables others to move up the ladder," said Chris Rhodes, managing director of Alliance & Leicester Retail Banking.

"Affordability remains good, which means that despite renewed mortgage borrowing, consumers are taking a responsible attitude.

"While household incomes have grown modestly, interest rates are lower than a year ago. Overall the cost of servicing a mortgage has therefore fallen slightly, despite gently rising house prices."