Rising earnings and cheaper mortgage deals are finally beginning to bridge the housing market's yawning affordability gap, Alliance & Leicester has claimed.

The two factors have been enough to eclipse housing price rises seen over recent months and led to increased numbers moving home or looking for new best mortgage rate deals.

"We are seeing greater confidence in the mortgage market from consumers," said Chris Rhodes, managing director of Alliance & Leicester retail banking.

"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."

Figures released by the bank have revealed that 16 per cent of under-30s are now planning to buy a home this year, a third more than six months ago.

The number of current homeowners planning to remortgage or move has doubled since January to 15 per cent.

"Affordability remains good," said Mr Rhodes. "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," he added.

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