Landlord optimism is at its highest point for almost four years, according to the National Landlords Association (NLA) in its latest Landlord Optimism Index.

The majority (65%) of landlords rated prospects for their own lettings business over the next three months as very good or good.

Landlords are also increasingly optimistic about the overall state of the private rented sector, with 54% seeing the industry’s prospects as “good or very good”, an increase of 8% compared with the NLA’s findings during the second quarter of 2010.

However, the 600 landlords questioned are less certain about the state of the UK economy, with only 6% rating this positively, compared with 9% at the same time last year.

David Salusbury, NLA chairman, said: “After a challenging few years, it is encouraging to hear that the majority of landlords are feeling positive about their lettings business and the overall state of the private rented sector.

“The increasing availability of buy-to-let mortgages and strong demand for rental accommodation is further stimulating positive sentiments, with rent arrears appearing to stabilise and void periods decreasing in recent months.

“The private rented sector is demonstrating its resilience, in marked contrast to some other industries and investments.

“Like other business people, it is clear that landlords are not immune from the effects of financial uncertainty. The fragile state of the economy is a concern for landlords, many of whom have mortgages to pay or rely on their property portfolios to earn a living.”

David Sansome, Managing Director at Sansome & George added: ”There is no doubt that confidence is strong amongst our landlord clients but I would continue to stress the need for vigilant referencing of tenants and ongoing, proactive management of properties in order to both minimise issues and maximise value.”