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Closed the tap (on the top right of the picture) and then turned on a hot water tap. Hot water came out for a few seconds and then stopped. Left it for a few minutes like that. Didn't notice any change on the dial on the boiler.
 
If the cylinder coil is (pin) holed, then, depending on the hole size, the boiler pressure should actually start falling if you leave the cylinder depressurized and the hot tap opened long enough, this crack in the coil (if it exists) may not show up until the coil heats up so would suggest leaving the cylinder depressurized maybe overnight with the hot tap opened, the boiler pressure certainly shouldn't rise excessively then, a few minutes test is pretty useless IMO.
 
Now quoted £1900 to replace existing cylinder (Ariston) with a 'Telford Tempest 500 Litre Stainless Steel Indirect Unvented Cylinder'. Is that about right and a good choice?
 

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