In a slump such as this, I would say it's an ideal time to buy for rent. The big question is how much do you want to get involved with the property? Plenty of lower-end and "distress-selling" deals around right now. Only consider these if you're willing to devote time and money in bringing them up to a good standard........... and maintaining them there.
Classically, the best bet is to buy new. There will be a warranty. Also, at the 1/2 bedroom end, first-timers are almost non-existent, so you should get a good, worry-free deal.
If not new, then renovated, or something not likely to trouble a surveyor too much.
Good luck