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@rpm
yep, you can build up an old road frame for £200 ish.
get a donor bike off ebay (don't pay more than £50) mainly for the frame/forks headset and bars/stem or check classifieds in other forums where people give whole bikes away.
either get some s/h wheels or a new set for around £120
the rest is a mixture of what can be salvaged from the donor bike,
maybe some new cranks and BB.
you should budget for chainring, chain and rear cog, also new tyres!