It was only a year ago that the UK government was being criticised for having too tough an austerity programme, which was stifling growth.

But while the politicians slug it out over who was right, investors can start to ask whether UK equities are a good prospect for them once more.

Conventionally one of the more popular areas for people to invest in, British companies are starting to see the benefits of an improving economy. But are companies across the board feeling the benefits, or is it best to focus on certain sectors?

One of the hottest sectors is housebuilding. There has been a well documented shortage of new housing for people, and with signs that the housing market is picking up, helped not least by Help to Buy, housebuilders are in a good position to make the investment.

Other sectors recommended by specialists include mining, which has been unloved of late, but still contains some good companies. The challenge here is whether this sentiment will remain.

One of the biggest challenges is investing in the right stocks before they get too expensive. UK investor sentiment is positive but there is wide disparity between sectors and companies, over which will do well, and whether they represent a good investment.

Optimism is certainly abroad, not least because there have been good signs of strong wage growth, and as people earn more, so they will spend more in the economy. UK equities is a sector to watch.

Melanie Tringham is features editor of Financial Adviser