A £1200 focus is going to be (as said) bottom of the barrel stuff.
prices have risen on focus quite a lot the last 6 months due to supply and demand. a year ago you were spoilt for choice on a focus, not now days.
Id say yes go for a mk3 golf.
Half decent ones are going for about £1k, so 1200 should find you a half decent one.
dont expect a minter for that money, but you will get a good reliable car for that price.
Check for rust on rear arches and lower rear 1/4 sills.
Also mk3/4 are prone to electrical problems, but only cosmetic, usually you will fint the blower and heating vent lights dont work, sue to a shit built in bulb you cant replace. and also they seem to over charge on the alternator a little, which is why you always see mk3/4 golf with a side light bulb or brake light out.
As long as it has a good service history, you cant normally go wrong with a vw.
You may if your lucky even find a mk4 shape BORA TDI for that money. 1.9tdi 130bhp 50+mpg and just as quick as the mk3 gti.
Im on my 3rd golf now (which is my 6th VW!!!) cant go wrong with them IMHO

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If you want some decent links to help you search just ask, as im using about 6 Vw forums at the mo to sell my mk2 VR6.