Its research showed that 65% of landlords said prospects for their own lettings business over the next three months looked “good or very good”.

In addition, 54% of landlords surveyed by the NLA said they were increasingly optimistic about the overall state of the private rented sector, up 8% on Q2 2010.

However, landlords remain less certain about the state of the UK financial market, with only 6% rating it positively, a drop of 3% compared with Q2 last year.

David Salusbury, NLA chairman, said: “After a challenging few years, it’s 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.”

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He added that the private rented sector is demonstrating its resilience, in marked contrast to some other industries and investments.

However, landlords are not immune from the effects of financial uncertainty, Salusbury said.

“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.

“The cuts to local housing allowance are a further worry for tenants and landlords alike; both should be mindful of how they may be affected and give consideration to how they will deal with the long-term consequences of welfare reform,” he said.