You forgot to mention transmission type, so I hope you can use both like any real driver should. For the record I drive a wagon, so I love hatchback.

Well, I'd really recommend trying out Auto Trader UK or some similar service. I had no idea about what make and models are available in hatchback with a diesel engine, so I started there.
http://www.autotrader.co.uk/

I'll start with a Renault Mégane. It's kind of ugly (from an American's standpoint), but they are one of the top selling cars in the UK. 1.9 Diesel engines are available, and you can probably find a used one in your budget range.
Wiki Renault Mégane page

Well, that kind of ends my knowledge of European cars. Sorry I can't suggest anything else.