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Thanks John, this is where I am a bit confused. Is it because of the insulation? Any idea how much it would cost me, budget is a big problem but the state of the walls are desperate.

Hi, I bought the mid terrace house in very poor condition over a year ago. Im in the process of replacing the ground floor external wall which are completely rotten, timber framed with earthwool itchy :x type thin insulation. Unsure what it was but presumably built 1970s with a gritty vinyl...