Nissan Almera, Toyota Corolla, Toyota Yaris or a Mk I Ford Focus. All mid-size except the Yaris, 5 doors mostly and they certainly do last. I see a lot of X and Y reg Foci still on the roads without a mark on them (obv you can't tell what they're like inside...). The other day I saw an impeccable R-reg Corolla; they really do last.
Petrols in the main, as a £1500 diesel might be a little cranky (your friend's Laguna is a prime example)
It's hard to say that something will be cheap to run - I used to run an old Focus and its servicing and insurance was 'cheap' and its fuel economy wasn't bad, but the tax was middling. Older cars often have worse fuel economy than newer ones - technology has advanced.
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