CKEditor and quotation marks

I'm finding that when I add an image to textarea using ckeditor then the images do not get shown in the resultant html page.

My textarea content template (text_block.html) looks like this

<perch:content id="text" type="textarea" label="Text" editor="ckeditor" html="true" imagewidth="640" imageheight="480" />

When I upload the img (send to server) in CK Editor then I do see the image in the editor.

When I save the edit I see just double quotation marks on the page. e.g. https://www.okourkids.org.uk/news.php?s=watch-out-book-kids-party (that page contains just an uploaded image as content).

If I look at the html source generated, it looks like the <img src="path_to_image" has the double quote replaced by " (ampersand + quot;) and I think that might be the problem

Here are my short diagnostics:

Perch is up to date
PHP 5.4.33 version is okay, but a little out of date. Consider updating soon.
MySQL 5.6.23 is up to date
Image processing available

Summary information

Perch: 2.8.6, PHP: 5.4.33, MySQL: mysqlnd 5.0.10 - 20111026 - $Id: c85105d7c6f7d70d609bb4c000257868a40840ab $, with PDO
Server OS: Linux, cgi-fcgi
Installed apps: content (2.8.6), assets (2.8.6), categories (2.8.6), perch_blog (4.6)
App runtimes: <?php $apps_list = array( 'content', 'categories', 'perch_blog', );
PERCH_LOGINPATH: /admin
PERCH_PATH: /home/bvdyphst/public_html/admin
PERCH_CORE: /home/bvdyphst/public_html/admin/core
PERCH_RESFILEPATH: /home/bvdyphst/public_html/admin/resources
Image manipulation: GD
PHP limits: Max upload 20M, Max POST 20M, Memory: 128M, Total max file upload: 20M
Resource folder writeable: Yes
HTTP_HOST: www.okourkids.org.uk
DOCUMENT_ROOT: /home/bvdyphst/public_html
REQUEST_URI: /admin/core/settings/diagnostics/
SCRIPT_NAME: /admin/core/settings/diagnostics/index.php

Thanks for any help...