I'll make the same suggestion that I made to Dan last year - get a DSLR. You really won't regret saving/spending the extra money on one when you see how good they are.

I notice on Flickr that there's a good few people using Nikon D3100s. They've now been superseded by the D3200 as Nikon's new entry level DSLR, which I think retails for about £350 with the standard 18-55mm VR lens. I've got the D5100 with the same lens and can honestly say they're worth every penny.

I notice Canon EOS 1100D DSLRs (with a 18-55mm lens) seem to have been reduced all over the place now. Amazon are selling them for £239.99, whereas I've never seen them below about £399 previously. Absolute bargain.