PEOPLE in their 20s continue to drive the property market, with one in four looking to buy a home within the next two years, according to the latest findings from Alliance & Leicester's quarterly index.

Twentysomethings represent the largest group in the UK who intend to buy property. Despite this, the number of people planning to move in the next two years has dropped and homebuyer confidence is at its lowest point in the history of the index.

Only 11 per cent of those questioned are planning on buying a home in the next two years, down from 15 per cent a year ago. Intentions to move in the next 12 months have remained static at five per cent for the last three quarters.

Buying being cheaper than renting is now the main reason to buy a home, with 23 per cent of people saying this is the most important factor in their decision to buy, up from only one per cent in April, 2001. This rises to 37 per cent for people in their 20s who are planning to buy.

Needing more independence is the second most important reason to buy, reflecting the age of those looking to purchase property: buyers in their 30s look for more space and bigger gardens when choosing to move.

The latest findings, from A&L's index, asked a representative sample of 4,000 people whether they intended to buy a new home, if so, when and what they are looking for in their new home.

Key findings:

People in their 20s are fuelling the property market, with 25 per cent looking to buy a home in the next two years (men 26 per cent/women 23 per cent). Single people are far likelier to buy a home in the next two years - 19 per cent of single people are planning to buy.

Londoners are the likeliest to buy a property, with 13 per cent indicating that they would do so in the next two years.

Older people are happy in their homes - only six per cent of people in their 50s and four per cent of people aged 60+ are intending to move in the next two years.

The most common reason to buy is that it is cheaper than renting, with 23 per cent citing this as the key motive. This is an enormous increase on a year ago, when only one per cent cited this as their reason for buying.