on waterproofing (victorian) foundations

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what is the general consensus on applying a waterproof render on the foundation of a (victorian terraced) house?

Background: frontroom is damp (water pooling on the bare ground below floor level, plaster in walls close the the water pool is blown).
We are in the process of digging away clay-ish soil from the front garden, on a slope towards the street, with the plan to fill it back up with hardcore / gravel. The idea behind it is to make it easier for outside water to drain away towards the front of the property rather than our house walls.

We have been told we should expose the whole foundations and waterproof render it.
I think it could be a pointless exercise, as even if the front of it is waterproof rendered, the back and bottom of the foundation will still sit on wet soil; if anything it will make it harder for the foundations to ever dry out when weather allows and I am afraid it is all going to backfire up the walls.
 
OP,
Stop with the digging and post pics of all the areas of concern: outside at ground level, and inside the house at FFL/damp signs.
 
well, I'm glad the three replies I received are all in sync with my gut feeling!

@ted456 I think I had a whole thread going on at the end of last year, will see if I can find it; not much as changed in all these long months, haven't done any more digging or other.
We are just getting geared up to get cracking again as we really do want a living room this winter!
 
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