For anyone who can do the work themselves, these cars are an absolute bargain. In the "good old days", a £1000 car would need epic quantities of welding, new metalwork and paint. I bought an Alfetta GTV when it was about 10 years old for £1000, and the first job was to weld in a new driver's footwell. Once my feet were no longer in danger of falling out of the bottom of the car, I could fix the mechanicals.
This car will probably need a belt change and service (£400 parts) and some new suspension bits if you are fussy about handling (£300). Once you've done that, it is cheap driving, albeit at 24 MPG. Compare that to spending £10K on something newer and losing 50% of the value in 2 years.