what would people suggest for a £400 budget ??
I hate subjective questions like this!
Best to take your £400 down to Comet/Dixon's/Jessop's/etc and try a few out. Whichever suits you best is the correct one to buy.
Just because I like a particular object doesn't mean that you will!
A 2 year old didgital camera is completely obsolete. Don't buy an old high grade DSLR, the modern cheap version will outperform it.
Completely disagree. Out-perform it in which context?
I have an old (1999 vintage) Olympus DSLR which still holds its own to this day. It's not ever about megapixel bragging rights. Quality optics will win every time. Admittedly it cost a (relative) fortune back in the day, but I say again - the quality of the optics counts above all else, and that quality does not diminish over time.