In reply to Moacs:
This is a bit of a puzzle. But a few leads I would suggest:
Salt can pull a huge amount of water out of the air. This is why it's so common for chimneys to show damp as the soot is a source of salts.
It's also why you need to ignore the prong meter thing. You don't know if you are measuring damp, or salt or somehting else.
Better to rely on smell and touch.
Being an old Victorian house, I assume it's solid wall construction. Originally this would have lime mortar and lime plaster. I suspect it's been repointed with cement and has gypsum plaster inside. This seals the wall up, so any moisture getting in anywhere has nowhere to go other than travelling through the wall itself internally.
If the above is true the source of the damp could be quite far form where it is emerging and it's just found a weak spot.
With the amount of damp you have described, you may find with lime plaster and pointing, you would completely mask the problem. Not ideal, but better.
That wire sounds like a rent-o-kill rising damp piece of nonsense. Ignore it.
Don't be tempted to use chemical damp courses or tanking etc. This will likely just move the problem and make the overall situation worse in the long term.
I assume the living room wall continues upstairs. Have you lifted floorboard upstairs either side of the wall to look for other sources?
I would also be looking externally, at either end of the alleyway. Leaking gutters, downpipes etc. If the water really has travelled that far through the wall (inside the wall will probably be lime, so it will travel) then it could take years of dry weather to dry out. Especially if it has gypsum and cement pointing.
Long shot, but if that wall continues into the loft, it could even be a roof leak and it's saturating the wall.
Try drilling into the wall upstairs and see if it's damp under the plaster.
The wall, if in the loft likely isn't plastered so will be more revealing.
Good luck