The top half of our house is painted but its peeling a little at the edges and needs renewing, my husband was going to wire brush the loose bits and then repaint with something like sandtex paint, will this be ok?
Yep...and use a scraper too...once all the loose stuff is off give any bare areas a coat of thinned masonry paint first then carry on with a full coat.
About 20% should be ok..if its too thick to water will soak into the absorbent surface and the paint film will jusy sit there..thats what causes a lot of flaking.
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