There are signs that landlords are becoming increasingly optimistic about the buy-to-let market, according to the latest landlord sentiment survey conducted by LSL Property Services plc.

It found that 49% of landlords think now is a good time to invest in property, up from 47% a year ago.

Meanwhile, only 1% think now is a good time to reduce the size of their portfolio.

6% of landlords surveyed are planning to maintain or expand the size of their portfolios over the next 12 months.

LSL Property Services plc, which owns the UK’s largest lettings agent network, including national chains Your Move and Reeds Rains, found that growing demand for rental accommodation is the main reason for the increase in confidence.

185,600 fewer first-time buyers entered the property in the last 12 months compared to the level before the downturn and the vast majority are remaining in the private rental sector instead. As a result, in the past three months, 52% of landlords have seen a rise in tenant demand and 68% expect demand to grow further in the next 12 months.

David Newnes, estate agency managing director for LSL Property Services, said: “Optimism among landlords is not only buoyant