Good flats often come in small packages, finding creative ways to live in spaces other people have rejected is pretty much the only way to get onto the property ladder in London if you don't work in the city.
Hogarth Architects have a bit of a reputation for turning cramped, dull, badly carved up 2 bedders in fancy locations into luxury studio flats. Of course, having the celling height and amazing windows makes a massive difference...
A South Ken "block-insert" studio:
And a Bayswater balconied studio: