How many bedrooms is ideal for a buy-to-let property investment? While property size is important, a range of factors will also play into a successful investment outcome.
With stable house prices, competitive mortgage rates and sustained rental demand, buy-to-let property investment continues to offer a strong source of income for investors in 2026.
Over recent years, however, the landscape has changed, driven by market fluctuations as a result of political and economic uncertainty and interest rate hikes that have made borrowing more costly. A more stringent regulatory environment has also begun to shape the market, with one of the biggest recent changes being the Renters’ Rights Act.
All of these factors have led to a renewed focus on rental yields and monthly returns, while slower capital appreciation has made property flipping – or attempting to sell a property soon after buying it for a profit – a less profitable and therefore less popular investment method.
While 2026 so far has shown signs of more stability and potential growth in the market than the previous two years, buying more strategically remains important, with investors being more discerning about their portfolios. A major part of this involves property size, and getting the balance right in terms of the number of bedrooms your buy-to-let investment property has.
Housing demographics hold crucial clues for investors
It is important to note that one factor that has remained unchanged is the huge level of demand in the private rented sector, which has been exacerbated by some landlords slimming down their portfolios or even exiting the market completely as conditions shifted.
The percentage of people renting in England remains relatively stable, according to the most recent English Housing Survey for 2024/2025. It found that in 2024-2025, the private rented sector accounted for 4.7 million people, or 19% of all households. By comparison, in the 1980s and 1990s this percentage hovered between 9-11%, with the sector doubling in size since the early 2000s – although the current figure has remained stable now for more than a decade.
Multiple factors will come into the decision on what size property investors should target, including budget, location, target tenant and overall investment strategy – whether you wish to target the highest yields or the property with the best chance of attracting long-term tenants, for example.
Looking at the statistics can also provide a starting point when thinking strategically. Surveys have shown that around half of tenants are now aged 35 or older, while the number of renters aged 45 and above is on the rise, according to research from SpareRoom. Leading on from this, the English Housing Survey found that the number of single-person households has risen significantly since 2019-2020. Today, around 33% of households consist of just one person, compared with around 28% six years ago.
There was also a significant decrease in the mean number of people per household – across all tenures from private renters to homeowners – compared with the pre-pandemic period, noted the survey, although privately renting households have on average 2.3 people.
While these statistics offer a broad view, they also point to levels of demand for certain property sizes and types.
How many bedrooms in a buy-to-let?
Two-bedroom rental properties, particularly in city centres, are likely to see strong appetite from tenants. They are more likely to attract young professional tenants who fit into the slightly older demographic, particularly if the property is a high-end, well-located apartment, catering for the high number of tenants renting in their 30s.
At the same time, one-bedroom properties could potentially be set to see surging demand as the number of single-person households is trending upwards. For investors keen to invest on a lower budget, a one-bedroom property could be an ideal option, and can also be a strong investment for those looking to build a higher-volume portfolio. On the flipside, the drawback can be lower yields, so it is important to weigh up the price and rental value difference between one-bed and two-beds to ensure long-term performance.
For investors targeting longer-term tenants, with stability being a key component, a larger property with three or four bedrooms in a suburban or family-oriented area could be a preferred choice. These property types tend to have a lower tenant turnover, and can still see strong demand, although void periods may be longer than in city centre locations.
If generating top rental yields is the priority, houses in multiple occupation (HMO) have been shown to offer the strongest monthly returns of any property type. Typically with three bedrooms or more, HMOs house multiple tenants simultaneously but on separate tenancy agreements, with bills often included. This can generate a strong, consistent income stream, bolstering overall returns. HMOs come with more stringent regulations than regular buy-to-lets, however, and can be more complex when it comes to financing as well as management.
Each property type and size comes with multiple benefits along with potential drawbacks, and many of these will depend on specific factors including cost, location and state of repair. Looking at the local demographic can give you a good idea of where the demand will be and what property size is likely to get snapped up for a strong rental price.
