Heath Library started at the turn of the century as a Book Exchange in a shop at 21 South End Green, opposite Hampstead Heath Station, where the overground now runs. Borrowers had to hand in a signed list of titles, and a few hours later a book or books, obtained from the Arkwright Road Library (itself long closed) , would be waiting for them.

In 1907 a library opened in the former school building in Worsley Road (now part of Pilgrim’s Lane).

Keats House was purchased in 1921 and placed in the care of Hampstead Borough in 1924.

In 1931 the present library, designed to blend with the style and scale of the house, was purpose built in its grounds to serve also as a museum for the Keats Memorial Library, a collection formed by Sir Charles Duke and given to the Borough in 1911. Camden Council was the Successor to Hampstead Borough Council and they managed the site.

The building then passed to the management of The City of London when they acquired Keats House, and Camden took a Lease on the building to continue to operate Heath Library. Camden Council surrendered their lease on 16th April 2012 having closed the Heath Library on the 31st March 2012 as part of their budget savings programme.

In March 2016, the Secretary of State for Culture, Media and Sport has decided to add Keats Community Library to the List of Buildings of Special Architectural or Historic Interest. The building is now listed at Grade II.