It is, 200k will get you a two bedroom flat. 2 Bedroom Bungalow in Peacehaven is now about 250k. The trend is to demolish the older bigger bungalows here, and put two new build in it's place, but they never provide enough parking for the cars. Alternatively they extend existing bungalows, extend outwards, put a room in the roof and then slap a price tag of £499,000 on it, which is the case for a bungalow up the road.
Who in the hell can afford these sorts of prices, not local people I know that. These are London prices. As another poster mentioned London is eating up the South East. There has to be end to this all, the end being a massive price crash, then they will be complaining that there are too many empty properties like what has happened in Spain.
The UK is way too London centric. It drains the north of business, and the accommodation over spills into the south east. Both are issues.