Studio flats have a tolerance level of about 18 months, after which they'll drive you batshit, IMHO.
If you rent, chances are it in a block of similar properties. Check it out late at night, to get a feel for the neighbours. Keep in mind there is a large turnover in such properties - your chance of living next to a nutter is pretty high. (Unless you're the nutter

)
Buying is problematic at the moment - you'll get fed up well before they sell at a decent profit. Quite possibly you'll incur a loss.
Studios rent out ok, if the price is right (if you can undercut the going rate by a few quid), so buying one, living in it for a year or so, then renting it out is a serious possibility if you're strugggling to afford something bigger at the moment.
Avoid like the plague any part-ownership schemes.
Try for a 5 year mortgage fix (min 3); the low rates are not going to last...
Obviously location is the key.