Hi guys, thanks so much for all the responses!
The hole is now completely dry, I think it must have aired out after removing the vinyl tiles, so I really don't think it's an ongoing damp problem, just a hole caused by an old leak.
The area's about 1m by 2m.
The soft stuff underneath the dmp is polystyrene!
I've love to rip the whole floor up and start again but this would involve taking up my kitchen cabinets, along with newly fitted worktops/hob/tiles etc so would reeally love to avoid doing this if poss!
But, I do plan on keeping the flat for the next couple of years at least so of course i'd like it to hold up for the forseeable future.
I'm no builder, but would it not be ok to just re-damp proof the hole, with liquid dpm, then fill it in with concrete, then put some thin ply wood or something on top and then tile?
Spending £2000 is absolutely not an option for me at the moment! I'd rather have a hole in my floor...
Thanks so much again for your help.
Katie