My grandparents' house had a basement, which was cold but it was never damp. As kids we loved playing in it.
The thing is looking back I realise that the entire "ground floor" of the house was raised a good 6 feet up, so the basement only went a short distance into/under the ground. In fact the basement had a door which led straight out into the rear garden. (The "official" back door of the house was at the top of a flight of stairs). So that's how you build a basement that doesn't get damp :-)
In London this seems to be quite a common design for Victorian-era houses which is why many basement flats have access to the rear garden.
The thing is looking back I realise that the entire "ground floor" of the house was raised a good 6 feet up, so the basement only went a short distance into/under the ground. In fact the basement had a door which led straight out into the rear garden. (The "official" back door of the house was at the top of a flight of stairs). So that's how you build a basement that doesn't get damp :-)
In London this seems to be quite a common design for Victorian-era houses which is why many basement flats have access to the rear garden.