Cheers for the advice guys.
General opinion of everyone I've asked is that he's obviously trying to take me for a ride and get a new bike from the payout. I think he expects me to just back down now he's taking me to court over the matter, as I don't have masses of money, I'm young and all that.
Fortunately I've spoken to a Solicitor, they believe he's also just playing games with me. The route they want to take is to counter-sue him, for "distress" to myself, transport and accommodation fee's to Sheffield, loss of work hours (I'm an IT technician, this would include compensation to my work as they would have to hire in a temp IT tech whilst im up country) and the court fee's in which they believe they could counter-sue him for an equivalent amount. Also the fact that it's completely unrealistic in the courts suing someone of my age for that amount, they expect if I lose, I would have to pay a significantly less amount or something silly like £10 a month for years. A nice "**** you" to the biker really.