A burst pipe in the loft has meant that the area above the ceiling is soaking wet and after removal of insulation material the foil covered ceiling panels retains a substantial amount of water. The water has got into the dry lined walls and at least 2 inches deep of water on the laminated floor. Is it likely that the house will dry out eventually and be satisfactory or isit the case as some alarmist builder suggests that the place needs to be gutted. What should I be doing?

Wow that tuff
Everything that got wet is just about toast
Insulation is a bigge if 5% of it gets moisture its lost 95% on its insul "R" value
The flooring probably will not dry out and if it does ti will warp and buckle sad to say pretty much everything that got soaked or wet needs to be ripped out and the sub floor also and let the joist dry. There are specialist that do fire and water damage assments
They
Call insurance if you have that and speak with them and they can help guide you but of course they want it the cheap way.

As A contractor I usually say "when in doubt throw it out" You don't want problems later and new is the best defense for that.
Think of a mold situation that could be created and that could be the worst residual later road
Hope this helps some and here are some thoughts and options

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