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@jammy
My usual bit on cheap guitars:
What goes at the lower end of the guitar market is time in manufacture, and quality control. £300 these days will get you a guitar with a solid top (and in some cases, solid wood back and sides), but this isn't the be all and end all.
What you should do is play EVERY guitar in your price range (bar the shitty £70 ones which aren't worth bothering with) and see which sounds the best. You may find a gem for £200, you may not.
Think of it this way
£200>£300 price bracket: 1 in 15 guitars off the production line will sound great (due to a lucky co incidence in bracing/string weight)
£300>500 price bracket: This may drop to 1 in 7 say, but the hardware and finish will be consistently better
£500>1000 price bracket: 1 in 3 perhaps, perfect fit and finish most of the time .
£1000+: Depending on manufacturer, 1 in 3, to every guitar will sound good, you will still find the odd gem though that really has something special over the others.