dont personnaly think its worth £200 but its worth what anyone wants to pay,I sold one in June 08, it made £161.99 on E bay,nice little machine, excellent modelmaking lathe, but it would be lost if you want to do some sizable turning, check the Link to Lathes and read and understand the description and capabilities.
Thats rather a crude lathe to be honest,cannot really tell from the pics but I notice that there might not be any Micrometer scales on the saddle and the crossfeed adjustments its crucial that these should be present otherwise its a case of cutting and measuring with a Micrometer.
Not a bad small lathe.
The cross slide and top slide do not have scales on them, not difficult to make them though. Screwcutting capability and back geared both useful.
Just replaced the headstock bushes in mine, you can still get them. £200 seems a bit steep though.