A new report suggests that we all want to live in a three bedroom property.

National property firm Strutt & Parker reports that downsizers, first-time buyers and buy-to-let investors are all competing for three-bed houses. The company’s research department says three beds are only the most popular – they are also selling the fastest.

Many first-time buyers are bypassing the small starter flat for a larger home, which can give much needed income in the form of renting out rooms to lodgers or friends. Rents for property have risen at a very fast pace and first time buyers are stretching themselves to get the maximum return on their investment.

Another group looking at three bed homes more than in previous years are downsizers. These are typically more mature people who are rattling around in big houses after their family have flown the nest.

They are often looking for three beds as they want enough room to entertain the grandchildren or friends when they come to stay or the option to convert one of the bedrooms into an office. The third group pushing up demand for three bed homes are buy-to-let investors who are looking on the hunt for a solid investment. These landlords are looking for capital growth.

Stephanie McMahon, head of research at Strutt & Parker believes: “Three beds have always been popular and the economic conditions since 2008 have generated a surge in interest. We have seen a marked rise in the number of older people looking for smaller, and perhaps environmentally sustainable homes.

“Downsizing also creates the opportunity to free up capital and supplement pensions which have been hit by fund performance. In addition they often want to help their children buy homes, although ironically will be competing with them when they downsize.”

She adds that a slowdown in house building has also stoked demand and as a result three beds are now carrying a price premium.