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@Oliver Schick
It's pretty good. If you need a size between 52-58cm for your bike, those come off pretty often. It's also likely that the seller will be knowledgeable and if there's something wrong with the sale (e.g., price too high), people will probably pick up on it in the sale thread.
Not many shops sell second-hand bikes, and there is usually a suspicion attached to most bikes sold at markets that they are stolen. Whatever you do, don't buy at Brick Lane Market, as a lot of stolen bikes are sold there. There are some legitimate traders, but you wouldn't be able to tell which ones they are.
You can buy pretty good OTPs new from £500. Even if you're only here for a year, that would be a good investment, as you'll save hundreds of pounds on public transport fares:
http://www.lfgss.com/thread9085.html
And make sure to check us out at drinks. At St Paul's you're very central and you'll have no excuse not to go to all of them. :)
Enjoy your stay in London in any case.