Hi all, I have looked this morning and the water is not showing any signs of oil contamination. Although the level was low again. I had a compression test done earlier this year and it was OK. The water pump was replaced last May when the cam belt was changed, circa 30,000 miles previous.
Temperature wise the needle is right in the middle all the time when it reaches temperature, so once it reaches temp it's ok and doesn't move.
I'm thinking it might be worthwhile getting the headgasket done and checked for cracks or any other faults then.