It could also be a problem with the tanks DIPTUBE. This is what takes the cold water to the bottom of the tank. They tend to crack all the way down over time, with less and less available hotwater being available as the crack gets closer to the top. No mention as to whether or not this only happens at one tap, so I have assumes all of your taps are involved. If it is a GAS hot water tank, check that your pilot light is functioning!
Internal hot valve is stuck, or the water pipe bring the hot to the shower is blocked or restricted, or there is a valve on it coming from the hot water tank which is turned off. If it's a heated electric shower then either the heater element is gone or the thermostat is stuck. If the thermostat is stuck it fools the shower into thinking that the water is already hot and it will not allow the element to turn on.
Hot water problem
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