it can happen in different ways , for instance , a timber framed house will move around , especially if it is old and has very little in the way of foundations. my own timber framed house (16c) has around 6 inches of its brick plinth below ground , just sat ontop of clay.
so , when the building moves the cement render doesn't and it cracks , moisture gets through these cracks and cannot escape thus causing a damp environment ar4ound the timber frame. lime render has a certain elasticity and it moves with the building so if dont properly , usually with hair it should remain weather tight.
another reason for rot is , if the walls are designed to breath , any moisture coming from below and rising up the wall will have no where to go , again this will rot the frame. this is especially apparent when people put a DPC in a building that should have a breathable floor. this forces moisture out to the walls that would otherwise have evaporated through the floor , the walls act like a wick sucking it up. now if the walls are sealed the moisture again has nowhere to go and the timber frame gets damaged.
i am at present having to remove 30 years of cement render and DPC'S from a 16c timber framed cottage. it stood for around 500 years with no problems until 30 odd years ago when someone decided to 'modernise' it with nice cement render.
i now have a whole wall of rotten studs to repair and 3 sole plates to replace as well as work to the brick plinth , ive had 60% of a clay lump extension disintegrate through moisture and frost damage and an old tudor inglenook that was cement rendered has crumbled into oblivion , i now have to get bricks especially made to repair this.
cement and old timber framed houses spells disaster for the house.
http://www.heritage-house.org/oakframing.html
this forum is worth checking out.
http://www.periodproperty.co.uk/forum/viewforum.php?f=1
its off line at the moment though.