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R Sage: We overclad the existing and new masonry externally, on the sides and rear, with 280mm "Neopor" rendered insulation. So there is no loss of floor space at all there.
Just on the old front elevation there is a 350mm depth of insulation (internal cellulose dry lining) where we do loose some floorspace, but we gave new window seats and splayed reveals to the old openings, and opened up the roofspace, so there are also compensating gains to the design. If the loss of floorspace in that one area had been a problem, we would have looked at a higher performing insulation for this one area - ie aerogel etc - but it wasn't an issue.