Repair-and-Deduct, Withholding Rent and RRA: How Landlords Should Respond

What does repair-and-deduct actually mean?

Repair-and-deduct is a limited common law remedy that may allow a tenant to arrange necessary repairs and recover the reasonable cost by deducting it from future rent. It applies only where the landlord has breached a repairing obligation and the tenant has provided sufficient notice and a reasonable opportunity for the work to be completed.

The remedy is subject to important limitations. It does not give a tenant a general right to stop paying rent. The tenant must normally arrange for the relevant work to be completed and may deduct only the genuine, reasonable and evidenced cost from subsequent rent payments.

Repair-and-deduct also applies only to work that falls within the landlord’s legal responsibilities. These obligations may arise under the tenancy agreement or legislation such as section 11 of the Landlord and Tenant Act 1985. It does not extend to improvements, tenant-caused damage or repairs that are the tenant’s responsibility.

A tenant who withholds the full rent without arranging the work, following the appropriate process or providing evidence of the cost may still fall into rent arrears. Similarly, deducting an excessive or unsupported amount may not be protected. As the remedy arises through common law rather than a general statutory right to withhold rent, its application will depend on the facts and evidence in each case.

What must a tenant do before deducting repair costs from rent?

For a repair-and-deduct claim to be effective, the tenant is generally expected to follow a clear and documented process. Where the required steps have been completed correctly, the tenant may be able to rely on the deduction as a defence to a possession claim based on the resulting arrears.

Landlords should assess any claimed deduction against the following stages:

• Written notice: the tenant should report the disrepair in writing and ask the landlord to complete the necessary work.
• A reasonable opportunity to act: the landlord must be given sufficient time to inspect the issue, arrange access and carry out the repairs.
• A further warning and deadline: if the landlord does not act, the tenant should write again, explain that they intend to arrange the work themselves and provide a final date for a response.
• Repair estimates: the tenant should obtain quotations, often from several contractors, and provide them to the landlord, allowing a final opportunity to complete the work.
• Completion and payment: only after these stages should the tenant instruct a contractor, pay for the repairs and deduct the genuine, reasonable and evidenced cost from future rent payments.

A tenant who does not follow the appropriate procedure may be unable to rely on the deduction as a defence. Any amount deducted should relate to work that falls within the landlord’s repairing obligations and should be supported by invoices, receipts or other evidence of payment.

The deduction should also be made from future rent rather than rent that had already fallen due before the repair costs were incurred. Where the procedure has not been followed, or the amount deducted is unsupported or excessive, the unpaid sum may still be treated as rent arrears.

Can tenants legally withhold rent when repairs are outstanding?

In England, residential tenants do not have a general legal right to withhold rent because repairs remain outstanding. The obligation to pay rent continues even where the landlord may be in breach of their repairing duties. Rent withheld outside the limited repair-and-deduct procedure may therefore be treated as arrears and could expose the tenant to possession proceedings.

Tenant guidance also makes clear that withholding rent can place a tenancy at risk. Landlords should nevertheless respond proportionately and establish whether the issue involves deliberate non-payment, an agreed reduction or a separate benefit-related payment problem.

Common situations include:

• A request for a temporary rent reduction: a tenant may ask to pay less while repair work is completed. A landlord is not generally required to agree, but any temporary reduction should be recorded in writing, including the amount, duration and date on which full payments will resume.
• Rent being retained in a separate account: a tenant may state that the money is being set aside until the work is completed. This does not create a legal right to withhold rent, and payment remains due under the tenancy agreement.
• A proposed repair-and-deduct arrangement: a tenant intending to pay for repairs and deduct the cost from future rent must follow the relevant procedure. Failure to do so may mean the unpaid rent remains recoverable as arrears.
• Housing Benefit or Universal Credit issues: where rent is paid wholly or partly through Housing Benefit or the housing element of Universal Credit, landlords should establish whether the shortfall results from deliberate withholding, an administrative delay or a change in entitlement. Each requires a different response.

Can a disrepair claim cancel out your tenant's arrears?

Even where a tenant had no general right to withhold rent, they may be able to set off damages arising from disrepair against the arrears if possession proceedings are issued. The principle established in British Anzani v International Marine Management [1980] allows a tenant, in appropriate circumstances, to raise the landlord’s breach of repairing obligations as an equitable set-off against a rent claim.

et-off is broader than repair-and-deduct. The tenant does not necessarily need to have paid for the repairs or followed the repair-and-deduct procedure. Instead, they may bring a counterclaim for losses caused by living with unresolved disrepair, with any damages awarded deducted from the amount owed.

Where the disrepair has continued for a significant period, a successful counterclaim may substantially reduce the arrears or, in some cases, extinguish them. This can directly affect possession proceedings. If the set-off reduces the arrears below the threshold required for a mandatory rent arrears ground, the possession claim may fail.

Following Televantos v McCulloch, the disrepair relied upon as a defence must generally pre-date the proceedings. Before serving notice on a tenant who has raised concerns about the property’s condition, landlords should therefore assess the repair history, supporting evidence and any outstanding obligations carefully, as these issues may become central to the court proceedings.

How does the Renters' Rights Act 2025 affect repair disputes?

The Renters’ Rights Act 2025 does not create a new right for tenants to withhold rent or alter the common law repair-and-deduct remedy. The obligation to pay rent continues while repairs are being arranged. However, the Act changes the wider legal framework in which repair disputes are managed and increases the potential consequences of an inadequate response.

Tenancies have converted: fixed-term assured shorthold tenancies have been replaced by periodic assured tenancies. Tenants remain in occupation until they provide two months’ notice or the landlord establishes a valid Section 8 ground for possession.
Possession is now grounds-based: every possession claim must rely on a valid ground under the reformed Section 8 regime of the Housing Act 1988. The condition of the property may therefore become a significant issue, particularly where the tenant raises a disrepair defence or counterclaim.

Rent increases are restricted: rent may generally be increased only once in a 12-month period using the revised Section 13 procedure.

The practical effect is that landlords can no longer resolve a repair dispute by relying on a no-fault possession notice. Records of reported defects, inspections, contractor instructions, correspondence and completed work may now form an important part of any possession claim.

AST Assistance’s Renters’ Rights Act compliance service helps landlords assess their position under the new rules before serving notice or taking further action.

What's changing for property standards in the private rented sector?

Later phases of the Renters’ Rights Act 2025 are expected to introduce stronger property standards and place greater responsibility on landlords to respond properly to repair complaints. As tenants become more aware of the reforms, unresolved issues involving repairs, withheld rent or proposed deductions are also likely to receive closer scrutiny.

Key changes include:

• A new landlord database: landlords are expected to be required to register from late 2026.
• A Private Rented Sector Landlord Ombudsman: this mandatory redress scheme is expected to become operational around 2028. It will give tenants a free route for escalating unresolved complaints, including concerns about repairs and the condition of the property.
• The extension of Awaab’s Law: Awaab’s Law has applied to housing associations and other social landlords since 27 October 2025. It requires serious hazards, including damp and mould, to be investigated and addressed within set timescales. The specific requirements and implementation date for private landlords are still subject to consultation and are not yet in force.
• A modernised Decent Homes Standard: the Government has announced plans for a revised standard to apply to rented homes from 2035. The detailed requirements and commencement arrangements for private landlords have not yet been confirmed.

The scale of the issue means a significant number of landlords could be exposed if they do not prepare properly. The English Housing Survey reported that 22% of private rented homes failed the decency standard in 2024, equivalent to approximately 1.1 million properties. It also found that 46% of private renting households reported problems with condensation, damp or mould.

With enforcement becoming more robust, landlords whose properties fall below the required standards may face increasing regulatory and financial risk. Local authorities received additional investigatory powers on 27 December 2025, while the Government’s implementation roadmap proposes higher civil penalties for certain housing offences, an extension of rent repayment orders to superior landlords and an increase in the maximum award available.

What are your repair obligations as a landlord?

A tenant’s actions do not remove or reduce the landlord’s legal responsibilities. Responding promptly to repair complaints, keeping accurate records and taking appropriate action are essential for demonstrating compliance and protecting your position.

The main obligations for private landlords in England include:

• Section 11 of the Landlord and Tenant Act 1985: landlords must keep the structure and exterior of the property in repair and maintain installations for water, gas, electricity, sanitation, space heating and hot water. These duties cannot be excluded through the tenancy agreement.
• The Homes (Fitness for Human Habitation) Act 2018: the property must be fit for human habitation at the beginning of the tenancy and remain so throughout. Where a property is unfit, a tenant may bring a direct claim for damages without first involving the local authority. Providing a safe and habitable home is a legal requirement.
• The Housing Act 2004 and the Housing Health and Safety Rating System: these provisions allow local authorities to inspect properties and assess hazards. Where a Category 1 hazard is identified, the council may serve an improvement notice, take emergency action or arrange works and recover the cost from the landlord. In 2024, 10% of private rented homes contained at least one Category 1 hazard, the highest proportion across all tenures.
• Safety requirements: landlords must arrange annual gas safety checks, complete electrical inspections at least every five years, install smoke alarms on every storey and provide carbon monoxide alarms in rooms containing fixed combustion appliances, where required.

A landlord’s repairing duty will often arise once they have been notified of the problem. Every complaint should therefore be recorded, investigated and addressed within a reasonable period. Routine matters such as replacing light bulbs and using the property in a way that limits avoidable condensation will generally remain the tenant’s responsibility.

Whether the property is self-managed or handled by a letting agent, the legal responsibility for compliance remains with the landlord. A planned maintenance programme, supported by clear inspection records, contractor reports and correspondence, can make it easier to demonstrate that repair issues have been handled properly.

When can rent arrears still lead to possession proceedings?

Rent that is withheld may still be treated as arrears, and those arrears can lead to a possession order where the landlord follows the correct legal process. With Section 21 abolished, possession claims must be brought under Section 8 of the Housing Act 1988 by serving a notice seeking possession that identifies the grounds being relied upon.

Where a tenant has stopped paying rent, the principal grounds are:

• Ground 8: mandatory rent arrears: this ground requires at least three months’ arrears, or 13 weeks where rent is paid weekly or fortnightly, both when the notice is served and at the court hearing. The notice period is four weeks. Where the threshold is satisfied at both stages, the court must make a possession order.
• Grounds 10 and 11: discretionary rent arrears: these grounds apply where rent remains unpaid or the tenant has persistently delayed making payments. As they are discretionary, the court will consider the conduct of both parties, including how the landlord responded to any repair complaints.

There are three important issues to consider before serving notice.

First, a successful disrepair counterclaim may reduce the arrears below the Ground 8 threshold. This can prevent the landlord from relying on the mandatory ground and require the court to consider the claim on a discretionary basis.

Second, the notice and grounds relied upon must be accurate. A landlord should have a reasonable basis for believing that the relevant possession ground applies and that sufficient evidence is available to support the claim.

Third, possession proceedings can take several months. Ministry of Justice figures for England and Wales show that the median period from claim to repossession reached 27 weeks at the end of 2025. Any procedural error may therefore cause significant delay and further loss of rental income.

What practical steps should you take when a tenant withholds rent?

The way a landlord responds during the first two weeks can determine whether rent payments resume promptly or the matter develops into a more serious dispute. The following steps can help protect your position:

• Acknowledge the complaint in writing within 24 to 48 hours: confirm what has been reported and explain when the property will be inspected. Where a letting agent manages the property, ensure that repair complaints are passed to you without delay, as the landlord remains responsible for an appropriate response.
• Inspect the property promptly and keep detailed records: photograph the issue, record relevant dates and retain copies of all correspondence. A clear written record can be important if the tenant later raises a disrepair defence or counterclaim.
• Complete repairs that fall within your responsibility: instruct reputable contractors, provide the tenant with a realistic timescale and ensure the work is completed within a reasonable period. Contractor reports, invoices and completion records can also help demonstrate that the issue was handled properly.
• Address the rent arrears separately in writing: explain that outstanding repairs do not generally remove the tenant’s obligation to pay rent and that any unpaid amount may continue to accrue as arrears. Keep this communication professional and separate from the repair arrangements.
• Review the payment history: where the tenant receives Housing Benefit or the housing element of Universal Credit, establish whether the shortfall is linked to a change, delay or suspension in payments. You should also review any rent guarantee insurance requirements, as early notification may be necessary.
• Consider mediation before taking formal action: a structured and properly documented discussion may resolve the repair issue and payment dispute without court proceedings.
• Seek advice before serving notice: if the tenant continues to withhold rent, confirm that the correct possession ground applies and that the notice, timing and supporting evidence are accurate before proceeding.

AST Assistance can help landlords assess the repair dispute, review the evidence, communicate with the tenant and determine the most appropriate next steps. Where mediation, formal notices or possession proceedings are required, AST Assistance can guide you through the process and instruct trusted independent solicitors where court action becomes necessary.

What common mistakes should landlords avoid?

Each of the following can weaken an otherwise defensible position and may create consequences beyond the immediate loss of rent:

• Ignoring the complaint: failing to respond can strengthen a tenant’s disrepair counterclaim. Even where the complaint appears exaggerated or tactical, it should still be investigated properly and the outcome recorded in writing.
• Taking retaliatory action: changing the locks, disconnecting services or pressuring a tenant to leave may amount to illegal eviction, which is a criminal offence and may also lead to a rent repayment order. Possession must be obtained through the correct legal process.
• Serving notice without sufficient grounds: before serving notice, landlords should check the arrears calculation carefully, including any lawful deduction or potential set-off. An invalid notice can result in substantial delay and additional loss of rental income.
• Accepting unsupported repair deductions: where a tenant has arranged repairs without giving notice, obtaining estimates or providing evidence of the cost, the deduction should be assessed against the repair-and-deduct requirements rather than accepted automatically or left unchallenged.
• Allowing records to become incomplete: inaccurate rent schedules, outdated tenancy agreements and missing safety certificates can all weaken a landlord’s position in court. Clear and current documentation is essential, particularly where the landlord is expected to prove compliance.
• Relying on outdated procedures: notice periods, arrears thresholds and procedural requirements changed on 1 May 2026. Using pre-Act templates or following previous rules may invalidate the notice or possession claim.

Our Renters' Rights Act specialists provide practical advice to help landlords stay compliant, manage rent arrears and resolve disputes with tenants confidently and effectively.

How AST Assistance can help

AST Assistance is a specialist consultancy for UK landlords, founded by Mark Dawson and backed by more than 15 years of property-sector experience. If your tenant has started withholding rent because of a repair dispute, we can assess your position, usually within 24 hours, and advise on the most appropriate course of action.

Our support includes reviewing the repair complaint, assessing your legal obligations, helping you document the matter correctly, communicating with the tenant, recovering outstanding rent where appropriate and advising on possession under the correct Section 8 ground where necessary.

Around 75% of the cases we handle are resolved without court proceedings. Where legal action cannot be avoided, we manage the process on your behalf and instruct trusted independent solicitors to conduct the court proceedings.

Whether you need support with a landlord and tenant dispute, rent arrears management or complying with the Renters' Rights Act 2025, AST Assistance provides practical, landlord-focused guidance to help you resolve disputes efficiently while protecting your legal position. To discuss your case, call our team on 01706 619954 or fill out an online contact form.