Dry rot spores in themselves are not harmful to health - in fact within most buildings they are present in the atmosphere. However˙dry rot can only become established when its spores alight and germinate on damp timber.˙So the existence of dry rot indicates a higher than normal˙level of dampness in building timber. This is usually caused by water penetration - leaking roofs, gutters etc.
However condensation can also be a contributory factor and this is usually associated with poor atmospheric conditions such as lack of ventilation, high humidity and cold air. Condensation can also lead to mould growth and while this is more an inconvenience than a health problem for˙the majority, for the elderly or those with˙existing respiratory conditions, it may be more problematical.˙
So dry rot per se is unlikely to be the problem but it could well be an indicator of underlying conditions that contribute to poor health in the family.˙˙