£7 sounds about right for a develop and set of 36 prints, my local one does that for £6 for colour and £8 for B&W, you think that's pricey i once got quoted in jessops for B&W dev + prints for £18.
If you plan to scan yourself then you can just get a the develop only option which is usually £3-5 depending on film type. I think home developing is about half that but you have the upfront costs of the equipment and would need to shoot a few dozen rolls to break even on it. I really can't help you with film development as it's not something i want to do myself.
I've shot for about 3 years now and i've settled on having someone else develop my film as i don't trust myself to do it and labs have the pro level equipment for developing, plus it's a lot easier and less hassle for me. I scan the film myself and i have an Epson V500 scanner, it's not perfect but good enough for me, i was paying £4 a roll for a set of high resolution jpeg's so the scanner paid for itself reasonably quickly. Though i am thinking of getting a dedicated 35mm scanner like the Plustek 8200i as i seem to be mostly shooting 35mm now and a dedicated scanner yields better quality.
Scanning is easy but getting it right takes more time, you have to learn the quirks of the software to get the results you want from each film you shoot i.e. it scans Velvia very differently to Ektar or ACROS. I scan my film with the V500 in Epson Scan and tweak the histograms to get the shot looking about right then scan to TIFF and edit further in Lightroom to get it just right.