Test the bond of the paint to the wall by sticking gaffer/carpet tape to the wall, leave for 10mins then pull it off. If the paint comes off with the tape you need to strip the walls.
I'm not sure - its a house we've moved into and upon stripping off the waterproof paper in the bathroom, we found this paint-type substance on the walls which is resistant to our steamer, but which in parts does peel off in little bits.
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