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@jimalex
If you can get your hands on a nice steel touring frame in your size at a good price then go for it. Dawes Galaxy, claud Butler Dalesman, and various Bob Jackson, Roberts, Raleigh and Mercian frames are available at a good deal less than your £500 budget if you hunt about a bit. As I'm sure you know, you should look for rack mounts and cantilever brake mounts.
The bike I've ridden almost everyday for the last 6 years is a Galaxy frame bought here for £45, with an ultegra group set and open pros. Complete build including powder coating was £730.
Not cheap, but a bike I think I'll have forever. As well as London riding its taken me across France and Spain too.
In short, if you have the time and inclination, buy an old, solid, good quality frame and build it up!