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@Fox
We won't be digging down - sideways! The floor is highly uneven at the moment, if there's an affordable alternative to concrete I'd consider it (although God knows where I'll put the body then, it's starting to smell).
Yes, am aware of issue with sealing up Victorian flats too well. Fortunately this definitely isn't a problem - there's a grate thing underneath the step which lets lots of air in and will be staying, and there are air bricks at the back of the cellar which are unblocked. If anything it's probably a bit too drafty but at least condensation won't be a worry.
Oh and yes, he offers a good long guarantee if he does it this way - I get the feeling it's as much to cover him as anything, it's not going to boost his profit much. Which seems a good reason to go with it too.