Investors are more confident about the UK stock market now than at any point and there have been major increases in investor confidence across the most popular asset classes, according to a new survey by Lloyds TSB Private Banking.

Lloyds TSB Private Banking's latest Investor Sentiment Index showed that among a representative sample of 1,166 private investors across the UK, net sentiment towards UK shares was +27, an increase of 11 since March and a significant jump on July, when net sentiment was +19.

The research revealed a significant rise in confidence for each asset class. On average, net sentiment increased by six points, twice as much as the previously highest jump of three points between May and June 2013, which also coincided with a UK stock market bull run.

UK property remains the asset class with the greatest level of investor confidence with a net sentiment of +36.

Despite the improving outlook, the Eurozone recorded the lowest level of investor confidence with a net sentiment of -30.

“The UK has seen tangible improvements in a number of economic indicators, such as manufacturing outputs, employment figures, and GDP growth. The outlook for UK equities has also been buoyed by the half-year reporting season, which has cheered the market and produced many positive surprises, to date outnumbering shocks by roughly two to one," said Ashish Misra, head of investment strategy at Lloyds TSB Private Banking.

"This backdrop of improving fundamentals is reflected in an overweight stance towards UK equities in our client portfolios. This is part of a wider overweight stance towards equities in general, including above-benchmark allocations to Japanese and Eurozone equities as well,” added Misra.