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You could find liveable boats within your budget. I lived on the water for about two and a half years. Bought a wreck and did it all up ourselves but £21k should get you something liveable. Might need a little work but if you're thinking of living on a boat I assume you're not afraid of a little DIY.
I work in Reading - happy to talk sometime about it all if you want to ask questions etc.
There are some difficulties with being of no fixed abode, mainly post but anything you need an address for like bank accounts becomes harder.
Lots of similarities between boat and van living I think. Practical things like toilet, power, water etc need consideration but if you're in Reading you can take advantage of water points along the canal (keys cost about a fiver), and elsan points for your poo.
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Arducius
moocher
I'm in Reading, but much of the same issues apply.
A boat would, I think, be my ideal situation, but much more expensive outlay.