Magnolia tree

No leaves on it and the other side looking good. Then I think the non flowering, non leafing branch is dead and the fungus like growth is lichen. A close up picture would help. You could also try scraping some of the bark off. if it is still alive it will appear green under the bark. Or try snapping a few twigs off dead wood is brittle and will break easily.
If dead I would cut that bit off as close to the ground as possible.

 

Hi Rachel, I agree with NigelJ. Whatever is wrong with your Magnolia, the best solution is to take a sharp pruning saw to it and cut out the dead stems as low down as possible. Then burn or otherwise dispose of the branches. Keep an eye open for new growth from the base as Magnolias are grafted and they do sprout from the rootstock. The 'proper' Magnolia will soon fill out to form a better shape, but if you want to speed things up, you could prune it after flowering, feed a balanced fertiliser and water it.

 

Thanks guys I will try these tips out......I really do appreciate it as I'm a real novice this will be my first summer as we moved in here august last year