I think that you'll find the legally binding bit relates to an agreement under the Sale of Goods Act (1908) where one can make a contract in a number of ways
Quote:
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Subject to the provisions of this Act and of any statute in that behalf, a contract of sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of the parties:
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However, that shouldn't stop your 'friend' from returning your property upon request. It would appear that your 'friend's' failure to do so is about to result in a lost or strained relationship and notwithstanding that, it's the right thing to do
I doubt you'd be able to go to small claims for breach of contract however there may be something under some other Act that I can't be bothered looking for
You can though if you're keen.