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@andyfallsoff
You can definitely get a bike for £200 that will do what you want although will be easier if you know what you are doing / can build it up yourself. A set of SS beater wheels should be available for under £100, and then the other bits for SS (brakes etc) can be had cheap if you don't mind flat bars / cheap or mismatched components. I can have a look in the parts box later, fairly sure I've got wheels that could work for you if you need?
However even with a £200 bike you still probably need a £50+ lock for it to survive in London, worth factoring that it.