Hey Ant,
I don't necessarily disagree that it isn't cheap. I'm coming from the viewpoint that we sold our 71 Danbury for £1100 - which was in a similar but better condition - and it came with a shed load of replacement panels. So compared to our Danbury IMO it does appear more expensive.
From the failures that the guy points out it seems like it needs a fair bit of welding - and on top of that you have the nasty looking rusty areas (around the engine lid hinges, n/s rear quarter, both rear arches, gutters). Also looks like the sills on both sides need some work and maybe the o/s front arch too.
I guess if you can do the work yourself it could be a good project - but if you can't there are buses out there offering better value, albeit for a bit more money.
Cheers,
Mike