Despite concerns about economic growth, private investors are more optimistic about UK stocks than other investment classes. Research by Lloyds TSB Private Banking reveals that over a fifth (23 per cent) of private investors believe UK stocks have a positive outlook in the next six months. Exactly half of investors rate the outlook for eurozone investments as negative; just 8 per cent expressed positive sentiment towards the region.

Just under a fifth (19 per cent) of investors plan to increase their equities exposure in the next six months, while 16 per cent have done so since March 2012.

“We are seeing visible improvements in a range of measures such as employment, retail sales, house prices and inflation, which is whetting investor appetite for UK assets and particularly UK stocks,” said Ashish Misra, head of investments at Lloyds TSB Private Banking.

Investors cite economic recovery as their primary investment concern (43 per cent selected this option). This replaces inflation as the chief concern 12 months ago.

The survey was of 1,000 UK private investors.