Alcove damp coming from garden party wall

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In my middle room, on the right-hand side of the right alcove, there is plaster and paint degradation.

About 1.5m up, inside, there is some kind of damp issue. Just outside, there is some, too, as well as cracking. Inside, there is an area where the plaster is light to the tap (water behind?).

I know that, at the base, there was a historical damp-proof remedy inside the alcove. Mid 2014, I also had a contractor patch up the low-down part outside the alcove, which was subject to cracking.

I suspect the problem is water tracking in from an outside, shared party wall, between my property and the neighbour's.

What is the solution?

A quote I received says: "Hack off, render plaster and paint, £540." That is both too non-specific and, I think, too expensive. The contractor had talked about plasterboarding the right of the alcove. Another contractor talked of same.

Please can you comment on a fix for the inside?

But also, what is the solution to stop this happening again? You can see the outside wall in the photos. The guys who refurbished my house before we bought it must have suspected it a problem because you can see they sprayed render in a patch adjoining the house.

Perhaps we could knock out a portion of the wall and rebuild, disconnecting the wall from the house.

But I like the visual texture of the wall and would prefer to leave it in place and if there were some kind of waterproofing option that seals water from getting in to it and, therefore, from getting in to the house.

Thanks for your advice.

 
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I replied to your other post of today ref. the front elevation - same "conditions" apply here?

Are you Robert or Roberta?
 

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