It looks like 'Pattern staining' due to mortar thermal bridging to a cold cavity is the most probable cause. The house was built in 1997 using thermal breeze blocks but NO cavity insulation. It transpires that our neighbours also have similar problems even where their walls have been papered. I'm therefore looking into cavity insulation to warm up the cavities to see whether that fixes the problem. This was also the advice of a number of builders who had seen this problem previously.
Cavity insulation will be a big waste of money and it wont stop the bridging of mortar . A couple of air vents top and bottom of the outside wall would be a better solution to what has been suggested as the problem .
If you do put in cavity wall insulation it won't be an expensive mistake, IIRC ours cost a little over £100. And it was made out of recycled plastic bottles apparently, extra yoghurt knitting points all round!
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