Normally a deposit would be non-refundable on something you would purchase - that is the whole point of it to hold the item/property.
However in this case UNLESS it was agreed that the deposit could not be returned they can not hold onto it.
You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this recorded delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce. Even if they are abroad you may be able to get a European Enforcement Order.
If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.
Can I clarify anything for you about this today please Thomas?