Before the lockdown, shares in listed residential firms were trading at a 13% to 14% premium to net asset value – the highest seen in the market since 2015 – meaning investors were willing to pay a higher price for the shares than their effective value.

That premium fell to a 1% discount at the end of February as the pandemic struck. By the end of March, shares in UK-listed residential property firms were trading at an average discount of 16% to the current share price, according to data from EPRA.

But by the end of April, the discount was 9% and by the end of June, it had narrowed to 6%, suggesting a return of confidence in the sector.

Helen Gordon, chief executive of Grainger, said the figures reflected the positive approach the residential sector had taken to the effects of the pandemic.

“At a time when people have been spending more time in their homes than ever, the UK private rented sector is proving its resilience,” she said.

“At Grainger, throughout the Covid-19 outbreak, our rent collections have performed well and in line with pre-crisis levels. Following the easing of lockdown restrictions, we’re now seeing leasing enquiries and demand grow.

“In times like these, the true value of a good landlord and a good-quality rental home is realised, and with economic uncertainty and tighter mortgage restrictions in place, we anticipate the strong demand for quality rental homes to endure.”

EPRA chief executive Dominique Moerenhout added that the improvement in investor sentiment was a result of value growth in the UK residential market.

“Listed UK residential businesses are reporting valuation growth that is outstripping asset growth, even as assets continue to rise,” he said.

“It’s an extremely positive picture for the listed sector and may point to the v-shaped recovery some commentators have predicted.”