We do dd is only 3 month though. It's fine our bedroom isn't big, but it means her cot is v close to my side of the bed, which is handy to pat her head in the middle of the night.
My only suggestion is you put her in a cot to begin with, as it will need less stuff and also it feels a lot safer (more stable) if everything has to be a little close together. Also you can get one with good storage underneath!
Yes, it's fine. I did it with dd1 for 15 months. I live in london and know a number of people who do it for an extended period of time. Fwiw, I have always shared my room with my children til they are about 18 months, despite now having a 'big' house.
we did it for 9 months (in fact we move into a house on Weds). It has been fine, dont get too much stuff, find out what you really need for a baby. if you have or can rent a garage it helps with storage