UK Property Law
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I'm glad to say that he is talking absolute rubbish!
now that you have paid the Deposit into a Scheme, it should remain there (and certainly not given back to him).
The law on matters where Deposits have not been paid into a Scheme gives the Courts the power to award compensation to a tenant equalling 3 months Rent IF, at the time it gets to Court, the Deposit has still not been paid into a Scheme.
As you have now done that, albeit a little on the late side, the Tenant now has no right to pursue you through the Court for any compensation.
I hope this answers your question, and if so, I would be grateful if you could leave positive feedback.
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