unfortunately, the bottom line is
for £250, there's not much you can do. it would cost you considerably more than that to bring a claim, you can't stat demand for under £750, and the landlord will know this full well. he probably pockets this sum from every one of his hapless outgoing tenants. you can tell him you've taken legal advice, he'll just shrug and wait for you to pursue it, knowing for that amount, you probably won't.

suggest you try and find your local pro bono law clinic, where lawyers do work for charity, and get them to write you a letter. i'd do it, but it would have to come from you as my firm doesn't do pro bono other than for registered charities, and the best worded letter of claim in the world will have less impact from an individual.

one question, though, does he let to students etc? threatening to report him to the university that is his main source of income might have some impact?

edit: although it might not be legally correct, you could also try arguing that, as you all have exclusive possession, pay rent, and have a formal landlord and tenant relationship, you consider that in fact you and the other occupiers DID have an Assured Shorthold Tenancy, and therefore the deposit should have been held in accordance with the TDS. say that you will then report him to the local council for failure to comply with the legislation if he doesn't refund it in full! might be legally flawed, but if he buys it, meh.
( rachelswipe with a fork, Wed 28 Jan 2009, 13:27, Reply)