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That is worth thinking about on the economics; I was concerned on the safety / legal aspect. Thanks for your prompt response.

Thanks Flameport; If I connect to the cold supply, I will need to fit an expansion vessel as the heater will be very close to the cold water take-off? Is that correct?

My kitchen is a very long way from the hot water tank and so approx 12l of water is run off each time the hot tap is used. I would like to fit a small (10l) unvented water heater under the sink and supply it from the low pressure hot water supply to the kitchen. We never use more than 5l hot...