Ask HN: Why do UK companies think that software development is cheap?

Just got asked from a reputable university to build a mobile phone application on (Windows, Android, iOS) with a CMS. The mobile apps are to include photos / videos / online shop / payment etc.

They wanted this done by 1st September, which is giving me 5 weeks to complete for the grand total of 3k.

Does anyone else find this on the low side?