In reply to steelbru:
Expensive I would say, largely as there's nothing there already.
You would need oil fired burner... £1500 to £2500 for the thing itself. Oil tank say £1 to 1.5k, Flue up to a few hundred quid depending on requirements etc. Then you have all the plumbing (copper pipes and fittings cost!) and electrical work to get water and power to where the boiler will sit, concrete base for oil tank to sit on, trench to run oil pipes to boiler. Then all the internal work of plumbing for radiators and hot water system, plus radiators.
I had a past it Oil fired Stanley cooker/heating system (internal) replaced with external a couple of years back plus new oil tank and that was £12k... and that was allowing for all radiators and underfloor heating pipework already in place along with oil lines etc (admittedly there was probably a days worth of extra plumbing rationalising/tidying up years of additions and alterations etc to make it all make sense and remove clutter of dodgy pipework all over the place)....
Neighbour has just had an external wood pellet burner fitted and that was about £17k I think... and that was going to an existing wet system so again, he had limited fresh pipework/radiators etc in his house. However, on this one he caught the tail end of a renewables incentive deal (Scotland) that means it should pay its own running costs and installation over I think about 6 years and after that he'll be back to just paying for pellets himself, so he sees it as a 'free' upgrade if all goes well.
A friend has a logfired boiler and a huge thermal store in an outhouse.... in summer you burn once every 3 days or so and heat about 7,000 litres of hot water, in winter daily in a small way runs the needs of a decent sized house. If you can get logs these are nice...
And I've been looking at log gasification fires for inside house that do a similar job - really nice focal point/feature that would heat a lot of water if required. If I fitted one of those I could use it instead of oil whenever I fancy and have oil as a reliable, timed, turns itself on when required back up. Again, access to free/cheap logs makes it more cost effective than buying logs in.
My advice - find a really good heating engineer/expert in all systems and all current deals and get them to advise either
1. The easiest, least disruptive quick improvement - the most bang for bucks with least hassel over a shortish duration and
2. His current best guess as to what to do now to have the best system for the next 20 years that will provide your hot water and warmth needs, be cost effective lonmg term and possibly add decent value to house.
Find somebody good and you could get a good system and possibly cheap or paying for some or all of itself view incentive schemes or suchlike. Go to any one expert (Heat pump, biomass, oil etc) and you will get 'sold' what they want to sell you I'd guess.
Not a decision to be bounced into quickly.
Long and short though, with no hotwater heating insfrastructure in place, whatever you do will involve a fair bit of mess and disruption and a fair bit of labour coists and time so even if system looks like a small 4 figure number, add in all the consumables and a week or two of fitting time and it all adds up.....