Landlords’ confidence in capital gains has almost trebled over the last two years, according to the National Landlords Association (NLA), rising from 18% to 52%, with a seven-fold increase in confidence in the UK’s financial markets over the same period.

However, the findings show that 32% of landlords say they might not be able to meet their mortgage repayments if interest rates were to rise in the near future.

Despite its findings, the NLA is looking to talk down capital gains prospects and has warned against relying on capital gains as a primary investment strategy. The warning comes after the Financial Times recently reported the estimated capital growth of private rented housing stock to be of £177bn in last five years alone.

Carolyn Uphill, chairman at the NLA said: “It certainly feels like a great time to be looking at buy to let as a means of additional income but you cannot simply rely on the prospect of capital gains as an investment strategy. A lot is being made of capital growth but landlords must remember they are in the business of providing homes for people. It’s a risky investment and the prospect of capital gains is only realised if and when the property is sold.”