As we are talking about small cars (sorry, didn't notice that little nugget with my first answer), I'd like to throw a couple of other contenders into the ring.
First is the Suzuki Ignis. Ignore the entry level SZ3 model, which does without many safety features and has a fixed three person (not realistically, it has a very narrow cabin) rear bench. The other two models (SZ5 and SZT) in the range have 4 seats, with the rear two being individually adjustable. Even with the seats slid back, the boot is of an acceptable size for such a short car, but in this configuration, there is an astonishing amount of space for the rear two passengers (especially given the size of the car). It has nice high seats if that appeals, the n/a 1.2 offers plenty of performance due to how little the Ignis weighs. But I would avoid the 'auto' version (AGS) a £7k budget would get you into, it is a single clutch automated manual and is dim witted and cumbersome. Facelifted 2020 on Ignis auto's use a much, much better CVT, but that won't be available with your budget.
My other suggestion may well be frowned upon, as I often see it being described as the worst car you can buy(!), the Mitsubishi Mirage. Now if you ignore what the motoring press say and look at owners reviews (including USA), on the whole, they absolutely love them!. Just to be clear, I'm talking about the post 2016 facelift version, where in addition to the appearance changes, improvements were made to the interior trim quality and ride/handling (which apparently wasn't great on pre facelift cars). It isn't a car to hoon about country lanes in, but if you accept this, it seems to offer a lot. Compact dimensions, decent interior space, very tight turning circle, incredible reliability (this is going by the reviews of US owners, many of which are doing considerably more miles than would be typical of small cars in this country) and if going for the higher of the two trim levels (either 'Juro' or '4' depending on age), incredibly well equipped. Climate control, heated seats, power fold mirrors, cruise control, four electric windows, dab radio and, on some of the Juro cars, leather trim!. The auto version is a CVT, so is absolutely fit for purpose.
Had I had a longer experience of the Ignis AGS (which we currently have), especially in low speed manoeuvring, we would have gone for the Mirage CVT instead!.
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