I did exactly this myself, although it wasn't that tiny, a 3 storey townhouse. It was the best house I could find in the area in my budget, and I didn't need to do any work on it.
12 years later, I remarried and still here. When DH sold his house and moved in, we paid off the mortgage.
We could have moved, but decided to stay as we like the house. It's quiet with good noise and heat insulation, bills are low, and we get hardly any condensation on the windows.
Garden is quite small and overlooked, but it's south facing, but we've done a lot with it and grow vegetables. The people are also very friendly around here, and it was nice that everyone was new to the area.
I don't agree that all newbuilds are characterless. Ours is in a row of 3 storey townhouses built in a crescent shape around a small green. It means the house is slightly curved, which gives it some character. We also have Juliet balconies at the front and back on the middle floor, which give a lot of light and make the rooms feel much more open.
The worst thing has been the kitchen, which after 12 years could do with replacing and is something we intend to do.
But I have previously lived in older houses and had many more issues with them than I've ever had with this house.
I have read horror stories about new builds and was concerned myself before I bought it and even paid a professional to do a snagging list when I moved in. There were a few things that needed doing, but it was definitely less than in any older house I've ever bought.