Definitely give the actual reason - redundancy may have had 'stigma' attached to it many years ago, but now it doesn't carry the same connotations - most people I know have been made redundant at least once, and not a single one of them has experienced any issue with new employers knowing that they've been made redundant (they've all gone on to new and better jobs)
I'd totally recommend being up front about the reason for leaving - redundancy is so common nowadays - it is no reflection on you or your ability. Hope this sets your mind at rest
best wishes
Ann

Honesty is the best policy. Even if for the simple reason that once you lie will have to lie again when your next prospective employer asks why you left.

And of course if or when they provide you with a reference you can't expect them to give you a dishonest reference, can you?

Cheer up and carry on!!

redundancy is a far better answer than personal reasons.

Personal reasons gives rise to far more questions.

In reply to Ann Simpson:

Thank you, all, you have definitely put my mind at rest :)

In reply to Devon Lovell:

You do however need to explain it as otherwise cynical old Bs like me will just think of redundancy as a euphemism for sacked

I think you had poor advice from your friend. Redundancies happen. Yes, sometimes they are used as an excuse to get rid of someone, but usually I believe they are genuine and there's nothing offputting to a prospective employer about a redundancy appearing in your CV. If you have five redundancies, ok, or 2 or 3 consecutive ones, ok, that's going to start looking like it's you not them.
'Personal issues' sounds terrible unless you have a genuine thing you are willing to explain, and it's a temporary situation not really of your own making. Otherwise it makes me think you are going to be unreliable or difficult to work with.

My last two roles have been made redundant and there has been no bad reflection whilst looking for a job. I started my new role as HR Advisor this Tuesday for a prestigious car dealership. I was honest about why the roles were made redundant.