Following recent figures which revealed that rent prices in the UK are now at an all time high, a new survey has found that landlords appear to be optimistic about the investment prospects in the private rented sector for the coming year.

The landlord sentiment survey was conducted by LSL Property Services, and found that nearly half (48 per cent) of landlords believe now is a good time to invest in the buy-to-let sector.

What's more, with 64 per cent expecting demand for their assets to increase in the next 12 months and 44 per cent having already experienced such a jump, it appears that the lettings game is set to remain an attractive investment opportunity for the foreseeable future.

David Newnes, director of LSL Property Services, said: "House prices are still subdued in many parts of the country and tenant demand is still growing.

"This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment."

And given the strength of positive feeling in the private rented sector, the study also found that four in ten landlords are planning on increasing their rent prices over the course of the next 12 months, expecting to do so by an average of 4.5 per cent.

But despite the optimism regarding the state of the buy-to-let sector, the report revealed that investors feel inhibited by the availability of buy-to-let finance, with 50 per cent who recently sought such funding explaining that the process was more difficult than it was a year ago.

Yet regardless of the challenges landlords might face in terms of acquiring a mortgage, the private rented sector continues to offer impressive profits, so its important for investors to protect their assets against unexpected costs.

Landlord insurance policies are an effective safety net that can help prevent any losses associated with essential repair work and boost an investor's chance of enjoying strong returns.