The thing is though, if he had planning permission and the work was done to meet building regs then we wouldn't be having this conversation.
powlesY - post a photo up to show what has been done to the garage to turn it into a dwelling, then I might be able to suggest some remidial work.
You need planning permission though, else any remidial work I suggest and you subsequently carry out will be for nought when the council come round and order you to rip it all out.
For what it's worth I've never seen a sectional contrete garage be approved for conversion to a dwelling - minimum is usually brick or timber built so dry walling can be fitted if there isn't a cavity.
Sleeping in a damp dwelling is actually dangerous, hence the requirement for it to be done properly.
As he said, its not being arsey, a proper conversion with planning permission and a non cowboy builder who built it to regs = not a damp room.
Damp carpet, you're looking at rot, mould, all kinds of nasty things you could end up breathing in and getting sick, theres a very good reason for not living in an unprotected bodged up garage.
If the place is damp, with condensation all over the place, well, the phone is in danger, as are the electrics, and wood construction could be in danger aswell.
To be honest the op's description simply isn't enough to go on, couple pics wouldn't be a bad idea but a better explanation of the "wet" would be helpful.
Why is condensation a problem, is it freezing in there, is it baking in there and freezing outside, why's it baking in there, electric heater, or central heating. IS it getting wet only when it rains heavily, is only the carpet wet or is there rising damp elsewhere, etc, etc, etc.
Carpet gets wet, isn't enough to go on at all, also a damp proof membrane doesn't do anything to prevent rising water, if its installed incorrectly.