would kind of depend on what type of portraits, heads or full body, inside or out, small room, big house?
I prefer a longish lens for portrait. 100mm up, but no good for around the house portraits.
i love my sigma 105mm macro for head shots, second hand not far from your budget.
a nikon 50mm 1.4 would be awesome too, new at £250 ish,
I use a 50mm 1.8 which is fantastic and really sharp, but I have to manual focus on my D60. The 1.4 was a bit too much for me at the time but is supposed to be a great lens. I've just bought the Sigma 30mm 1.4 in the classifieds, they go for around £220 second hand (Up to £400 new) but it's meant to be a great lens. It all depends on how much length you need really, I found the 50mm to be slightly too restrictive, but at least I have the option to crop with the 30.
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