I'm skimming the whole house, all lath and plaster and am being advised that there is no need to use lime putty on external walls as the cavity behind the lath deals with moisture. Is this correct? Can I use gypsum?
You've got lath on external walls? So it's a timber framed building? OK, irrepective, I'd say no, use lime. Trapped moisture is not going to be good for timbers, you would be sealing one side if not both. Potentially the dew point will be the back of the inner skim coat if the cavity gets cold.
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