No. Withholding rent is rent arrears, whatever the state of the property, and it puts the tenant at risk rather than you.
There is a narrow route called repair and deduct, where a tenant pays for a repair themselves and takes it off the rent. It only works if they follow a strict process: written notice, quotes, a reasonable time to act, and proper invoices.
Done properly it is lawful. Done informally it is arrears.
If a tenant tells you they are withholding rent, treat it as a repair problem that has escalated rather than a payment problem. Fixing the repair is usually faster and cheaper than the alternative.
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