Rental contract gone wrong!?

I was supposed to move into a house on the first but it was completely trashed by the last tenant. Knowing it wasn't the landlords fault I offered to hold back a week while they did some repairs only to find out the landlord expected me to move in with the house half finished... as in wall paper still falling down, the yard still a disaster and non-playable to children, etc. Right then I knew this was going to be a disaster. The landlord then told me they wanted to raise the deposit (even though we already had an agreement on contract). I offered to still move into the house but with out the deposit raise and with rent reduced just a fraction until the house was completely repaired. Who would pay full rent for a house that's half the quality?

All in all it became an ugly fight and I decided to can the entire idea and just look for a new place. Now the landlord thinks they have legal action to take. Even though all terms of the contract were broken from the get go being that the house wasn't available on the 1st as stated in the contract.

Should I be worried?

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