Nine out of 10 buy-to-let landlords in the capital believe the value of their property will increase over the course of the next year or hold steady for the remainder of 2010.
According to property portfolio management service the Young Group, this represents a 10% increase in confidence levels among residential landlords over corresponding figures for the second quarter of the year.
The feel good factor is restricted to the capital, with 30% of buy-to-let landlords outside of London saying that they believe prices are likely to fall from their current levels over the next 12 months or, at the very best, remain static.
However, the company points out that even these figures show clear signs of improvement, as only 49% were anticipating property price increases at the beginning of this year.
The latest report also suggests that the UKs buy-to-let investors continue to take a long-term approach to the market, with 95% of those landlords surveyed stating that they plan to remain in the sector and will hold on to their properties for at least the next 12 months. Just over half of all landlords (55%) anticipate retaining their property for the next decade.