Hot hatch: Peugeot 206 Gti
Peugeot's 206 seems to have been around for a very long time, so values are heading even further south. Just £4,500 gets you into a year 2000 Gti; there are plenty listed in the classifieds. £6,000 will even buy you a 2002 example.
Alternatives: Renault Clio, Seat Leon is fine