Avoid anything made in the UK.
I think that's a bit much. There are many fine UK-designed and/or made cars in the UK, and particularly from the Japanese makes. A few 'lemons' occasionally appear, but not that often.
I would say, for the money the OP has to spend, then a mk1 or mk2 Honda Jazz would do the biz, if that's still a bit big, then the Hyundai i10/Kia Picanto (essentially the same car with slightly different exterior and interior) 1 ltr (very small but still useful shopping/commuting cars [shorter distances]), bigger (not that big) brothers - the Hyundai i20/Kia Rio (Fiesta-sized) and the Mazda 2 mk2.
As others have said, petrol, manual, reasonable mileage for its age (not a 'granny car' that just sits around most of the time and just goes to the local supermarket and back once a week) - think between 5,000 and 10,000 miles x the age of the car as reasonable, plus a full service history (with stamped service book, preferably done at a main dealer, at least for when it was in warranty (Honda/Mazda - 3 years, Hyundai - 5, KIA - 7).
Note that the Hyundai/KIA longer warranties don't cover the same items for the years after 3 as they do before - mainly the 'powertrain' (essentially if it isn't reliable, it would've already gone wrong by then, but its nice to have a bit more piece of mind if you can find a car still under warranty.
It might be worth buying from a main dealer - you may be able to spot (keep an eye out) a part-exchanged car (same make as the dealer only) that a long-standing customer has PX'ed when buying a new model, and as such the dealer (especially if its a smaller, older (5 years old say] and cheaper mode, they will want to get rid of it asap. Quite often they flog them to independent (second-hand) dealers if they can't shift it to someone like you within a short period of time - they prefer to sell new or cars up to 3 or 4 years old only (they look nicer on the forecourt and get them more commission due to the higher price). You might be able to get one at the price they paid plus £200 or so, if you're lucky.
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