Relocated, recuperating .long post ..

I agree with Sangie, there is no need for you to lie.
Gaps on a CV do raise questions so a very brief explanation ("dealing with an (initially misdiagnosed) medical issue which is now fully controlled, and relocating") is fine, and has the benefit that since you have told the trust, you don't have to try to remember what you said!

In terms of job hunting, I wouldn't ;let your friends push you before you are ready, however, I would suggest that you start to look at what is being advertised to start to get a feel for what is available and what salary expectations will be reasonable (I would guess probably significantly lower than London rates for similar work)

Decide whether you have any gaps in your skills or anything which is a bit rusty, and look at how you could bring yourself up to speed - an evening class / adult ed. class might be useful both to demonstrate that your skills are up to date despite the gap you've had to take, and might also be useful in helping you to rebuild your confidence.

Also - while I understand you are over the limit for means tested benefits, have you looked onto whether any of your medical issues would entitle you to any disability benefits or additional support?

Finally , when you do start applying for jobs, as you are initially looking for part time work, think about what hours you want to work / would be willing to work. As an employer, i know we find that an awful lot of people wanting part time work want to work mornings as they are working part time to fit around school times / child care. Someone who is willing to work (say) 11-5 instead of 9-3, or even 9-5 2 days a week would be very appealing, so if a later start would suit you, or if you would be willing to consider those kinds of hours, be sure to make that clear in interviews, as it is uncommon!