I would say so, however it could have arisen from something, many things, that has been fixed, maybe some time ago. Biggest concern would be that keel to hull join has failed, in which case expensive repair needed, but unlikely. I would talk to the seller about it and see what they know. Amount of rust, which I would say is not an issue but needs sorting, looks an easy fix, must have come from more than atmospheric damp in my view. If the boat is in the water and bilge is dry now then be good to know the story, if they know.
If you are serious about buying this one, do get a survey done. M31s are really nice boats, Mine is a MK1, would have preferred a Mk2 but only as it has a forward facing chart table. Mk 2 has a sugar scoop transom which the Mk1 does not but no big deal to me. Otherwise they are both the same I believe. Does it have original Volvo 2003??? or has it been upgraded?? I still have the old 2003 which runs and starts very well and its 40 yrs old. If its been well cared for people say they go for ever, nice low tech lump. Others just rip them out and put Beta engines in. One day I suppose. 28Hp on a 31 ft boat is a lot of power. Not let me down yet, touch wood. But I would get a diesel engineer to have a look over as surveyor probably wont run it. I had a M28 before, which I sold for various reasons. Basically the same boat but a bit smaller. Attracted to both as they just dont look their age, especially if you redo the decals and lines on the hull. You wont win many races but as a cruiser the 31 provides a lot of space and comfort. And build quality is really good, much stronger than new boats but its heavier for it. Fine with me. Great boats, sail well, safe and strong.