WHETHER you see them as cramped and overpriced or small and cosy, there is no denying that London has a well-established market for studio apartments.

And although, in sought-after areas, they can be as expensive as much larger properties elsewhere, studios are often seen as a budget choice; either for people getting their foot on the ladder or for those who are looking for more economical rental options.

Perhaps the ultimate in compact living, studios vary in size but all generally consist of one room plus a separate bathroom. Some will also have a separate kitchen, but the fact that there is no separation between the living and sleeping areas will present certain challenges.

Perhaps the most obvious consideration when moving into a studio flat is that of space - and not just the lack of it. Living, sleeping, eating and entertaining, all in one room can be hard to organise, even in a large studio.

But although there are no walls to divide the room, there are other ways to create the illusion of different spaces, perhaps using screens or items of furniture. You can even create different areas by using plants or rugs to suggest different uses of space.

If you're living in one room, clutter is not going to make the space seem any bigger, so it is important to find good storage solutions.

The best approach is to first work out what dead' space is available, for example under the bed, on top of the wardrobe and inside empty suitcases.

For everything else, make sure each item has a place - that way you're more likely to keep it tidy and clutter-free.

Using decorative boxes can be another way to keep your possessions under control and add an individual touch to your room.

If you are decorating a studio flat, it's a good idea to avoid dark colours as this will make the space seem smaller. Lots of patterns or textures will have a similar effect so it is best to stick to one or two light colours.

Choosing the right furniture can also be important if you are to create a practical and comfortable living space. Picking items that can be used in a number of ways or that fold up are good choices and there are plenty of creative solutions available.

The bed is a fairly large item of furniture on which you won't want to compromise, but choosing something multi-functional such as a futon or sofa bed means you will have the option of transforming your space during the day. Similarly, a trunk or chest would make a great storage space for blankets or bulky items - but throw a cloth over it and you have a great coffee table.

You can even squeeze in a dining table if you choose carefully. You can buy drop-leaf tables that fold up to just a few inches wide and can be stood against a wall when not in use.

By thinking creatively about furniture and storage, you can create space and prevent your studio becoming just one big bedroom.

Studio flats can be a challenge in terms of space, but they are cheap to buy and rent, economical to heat and quick to clean, proving that small can be beautiful.