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pifko
sacredhart
The answer to new car questions is always Toyota or Honda (or possibly Mazda or Kia).
Honda Jazz would be perfect for London. Amazing amount of space in the back with the magic seats folded up. Even better a hybrid version is within your budget. Not perfect for those longer trips but would handle it non the less.
A self charging hybrid Toyota would be great too. Auris estate is available for a little over your budget.
Apologies for becoming thread killjoy but I've been thinking about environmental stuff a lot recently having had a kid and was disappointed by the lack of electric / hybrid chat on this thread. If anything it seemed to be getting more 4x4/ Subaru focused. As a cycling based forum I'd hoped for a more forward thinking consensus.