The attention-grabbing performance of the London property market provided some of the most compelling moments of the boom. Every synonym for “increase” was employed to chart its rise, with a special focus on the scene-stealing role of “prime” - the smart, secret rich or celebrity-filled bits of the capital such as Chelsea and Notting Hill. Here prices either surged, spiralled, or soared (alliteration was as big as the numbers being asked for Mayfair mansions) by as much as 40 per cent.

In a neat symmetry, we could now state that bust has entirely replaced boom in the capital, but the situation cannot be so tritely summarised. For example, the symmetry of houses in the Belgravia's stuccoed squares continue to please Middle Eastern buyers so much so that the £5 million-plus top end of prime is doing, mostly, OK.

Conditions in less expensive postcodes are largely similar to those elsewhere in Britain. As one commentator put it: “Buyers and sellers are in a Mexican stand-off,” unwilling to commit, fearing that prices could slide further. But London could be first to emerge from the gloom, perhaps as early as 2010, and the South East could follow shortly after. The recovery in the capital could even arrive rather sooner than the new eco-friendly Routemaster buses planned by Mayor Boris.

Yolande Barnes, the residential research director at Savills, believes that the upturn could take the following route: “The revival is likely to start in prime, as this part of the market could begin to look good value to international investors and City executives who will be the first to benefit from any loosening of the credit crunch. Also on the lookout for property will be middle-class couples with spare savings and large amounts of equity in their homes, even despite the downturn. The effects of this renewed activity will ripple down from Notting Hill to other parts of the market.”

For the moment, while the return of the Routemaster bus remains theoretical, the new mood of austerity among househunters is close to that of the Fifties, when this vehicle made its debut.

Prospective purchasers (there are still some around) are insistent that homes are within their means and within - really easy - reach of transport.

A fixer-upper property appeals to the new willingness to make-do and mend. Douglas & Gordon, the estate agent, reports that it took just ten days to sell a rundown flat in Trouville Road, Clapham, London SW4, close to the Tube and the restaurants of Abbeville Road, pictured. The completion price was £495,950, just £4,000 below the asking price.

As www.houseprices.co.uk shows, this is still almost twice the amount at which flats on this road were changing hands in 2001. The Archive section of The Times's website (www.timesonline.co.uk ) provides a far greater perspective on the changing fortunes of the London market. Throughout the summer of 1958, there were race riots down the streets of Notting Hill, then a slum area. Peter Rachman, the infamous slum landlord (and source of the term Rachmanism) had his HQ on Westbourne Grove. Fifty years on, this is the neighbourhood's elite retail venue where a house costs at least £2 million.

Banking on recklessness

The “economical treat” is all the rage. You enjoy restaurant-style food, but you cook it yourself at home. Among the newly thrifty indulging in this trend will be many would-be first-time buyers who had hoped that they would, by now, be dining in their own home, rather than a rental flat.

Even though the downturn is producing property bargains, these are out of the reach of most first-time buyers. Banks are demanding ever higher deposits: they also keep raising mortgage rates. Figures from the Royal Institution of Chartered Surveyors (RICS) indicate that, in some circumstances, a first-time buyer couple would need to save all their joint annual take-home pay to meet the buying costs of a home, such as the deposit and stamp duty. A year ago, banks were recklessly generous, handing out 125 per cent loans. But their current stance is becoming almost as senseless as their former profligacy.

The great escape

Property shows still fill the daytime TV schedules, continuing to send out the message that there's money in development. But on-screen captions point out that the valuations are out-of-date, turning these shows into yet another reminder of the new climate.

During a bout of summer flu last week, however, I discovered a different kind of property show - MTV's Cribs. The US version focuses on the bling residences of rap stars, with bathrooms you could play baseball in. The UK version takes you on a gentler tour of properties such as the Cotswolds farm of another singing star - Alex James, the bassist of Blur who now concentrates on cheese.

Money is never mentioned. There are no unrealistic (even in the good times) forecasts of profits from converting a wreck, just escapism. Sometimes that's all you need.

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