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There's a very good 182 for sale on here for £4,500.
If you pay your membership, you can have a look.
£3,500 is too much for a 172 though, knock them down.
You can upgrade the engine mate, but there's very little point.
I'm sorry to say that the induction kit will make no difference at all to hp. In fact, you'll probably have less.
The best things to do are:
Matched inlets
Remap
Clio v6 airbox
It's a very good rep, but there's still the issue of the engine being in the wrong place. Unless he's gone to the effort of having a false engine cover made up....