Good Lawyer Guide's response

Yes. A landlord can demand any amount he or she wants as a deposit – it is up to you to agree (or refuse to pay it, and so not enter into the tenancy agreement).

Most landlords require one month’s rent as a deposit.

For many years, landlords would simply take the deposit money and refuse to hand it over at the end of the lease (perhaps claiming that there had been damage to the property). To deal with that situation, the tenancy deposit scheme was introduced. This now says that once you have paid your deposit to your landlord (or his agent), then - within 14 days - the landlord (or agent), has to give you written details about how your deposit is being protected. This means that the deposit money must be put into a government approved tenancy deposit scheme (with you being given written details of the scheme involved, contact details for the landlord or agent, how you can apply for the release of the deposit, and what to do if there is a dispute).

If you do not get this notice within 14 days then you can start proceedings against the landlord (or the agent you paid the money to) in your local county court. The court can order the landlord (or agent) to pay the money back to you, and if the money has not been protected in a government approved scheme then they will be ordered to pay a penalty to you (three times the amount of the deposit).

The only warning I would give is that the courts have been very sympathetic to landlords about imposing penalties of three times the deposit. The judges have decided that the 14-day time limit for the landlord (or agent) is not strict. So it is OK for the money to be paid into the government-approved deposit scheme outside the 14-day period, as long as it done before you start your court proceedings.

At the end of the tenancy, you should get the money back, although the landlord (or agent) can deduct money that you owe (eg rent arrears, the cost of putting the property and its contents into the condition in which it was let to you).