A quick update. I've decided to get the water pump/thermostat housing replaced. Called two local independents who both quoted £850 inc VAT but both couldn't do until second week of January as their diaries were absolutely choka. Out of curiosity I called my local VW dealership assuming I'd be quoted a silly price, however, was quoted £830 inc VAT and can do week beginning 17 December. Is this as surprising to you as it is to me that the dealership is the cheapest with best availability??