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landlord nightmare!

my daughter is currently renting a share in an house(students),house has loads of jobs not completed(house was being worked on when they signed up early summer for september move),damp patches in bathroom,shower not properly fitted,washer fitted in downstair bathroom with waste pipe into loo,at the start of tenacy one of other housemates moved out due to ill health,landlord accepted termination of tenancy,today informed 2 remaining housemates if no 3rd tenant by january they have to pay rent increase to cover this,what rights do they have etc?
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