UK Property Law
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If the state of damp is very bad then you should contact the local authority environmental health department and ask them to send an officer round. If the state of the property is bad he will issue an enforcement notice against the Landlord to carry out works and this may prompt him in to making the repair. If he finds it unfit for human habitation then he will declare it as such and you will be able to terminate your agreement with the landlord on the basis of this breach. Make sure you get something in writing to that effect.
Were you to terminate on the basis of the damp (ie. that the property is unfit for human habitation) without anything in writing from an environmental health officer then you risk entering in to a dispute the landlord about whether this is a legitimate termination.
Concurrently with the above you should formally write to the the landlord specifying the disrepair, making a list of the reasonable repair required and ask that he make those repairs within a reasonable time (eg. 7, 10 or 14 days). State that if the landlord does not make the repair within that time you will pay to have the repairs made and will seek to claim the expense from him and are prepared to make an application to court if necessary.If the landlord does not make the repair you can pay to have it done and then write formally to him requesting the payment of the cost, again within a reasonable time). If he does not pay you can issue a claim for the money yourself through Her Majesty Courts Service's online service: http://www.moneyclaim.gov.uk/
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Okay, try and get some written confirmation from the Council stating that you were rehoused because the property was unfit from human habitation. If you do then you can safely terminate the tenancy. Also ask if the matter was referred to their environmental health department, if it has ask for written statement as to unfitness for human habitation as well.
If you only have the letter from the GP then you can still terminate but may get in to an argument with the landlord/agent about whether this letter properly constitutes evidence of unfitness for human habitation.
In the meantime, send a copy of the GP's letter to the agent as evidence of unfitness for human habitation and see if they will accept it. State that if they do not you will press the environmental health department to visit the property and this may result in an enforcement notice being service on the landlord or declaration that the property is unfit for human habitation. Use this as leverage.