This basic form of wall covering can be used in in bathrooms but can suffer adversely from humidity and contact with water. It is probably best to use paint in conjunction with a more waterproof wall covering such as tiles, keeping paint away from "wet" areas in the bathroom.
There is specially formulated bathroom paint available with anti-fungal properties which prevents mould growing on the painted surface. Zinsser make a range of speciality paints and primers including Perma-White which they guarantee for five years.
Mould growth on walls or ceilings of your bathroom can only occur if there is moisture present in the form of condensation - if you get rid of the condensation then you will help erradicate the mould. The best solution is to fix an extractor fan which will remove the moist air from the room.
If condensation is a real problem then bathroom cladding is the best solution together with an extractor fan.
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