Very much this, but I've been lucky and riden the house price increases well to end up in a largeish place - but even then if I didn't have a garden office it would be hard.

Two friends if mine move to the nearest city and got a small one bed as they both do a lot out of the flat - theatre, movies, bars, sports etc - so the house was really a place to sleep and shower, plus eat and relax a little.

Home working for them meant losing space in their kitchen/livingroom/dining room - and having one of them work from the bed room.

Inner city UK flats are often very small, and still relatively expensive.