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Good day your question has been forwarded to me to see if I may be able to assist.
Whilst the money held on deposit is the same as your last month's rent, the landlord is not obliged to accept the deposit payment in lieu of rent. This really is all subject to negotiation and whether the landlord is prepared to accept this. if they refuse to, you would still be liable to pay your rent, and, upon moving out apply for your deposit to be reimbursed.
Theoretically if you do not pay it, what the landlord could do is to bring legal action against you for the unpaid rent. By the time the case is in court, you would have theoretically have moved out and would be entitled to your deposit payment back. In this case you theoretically could use this money to compensate the landlord. You would however also be responsible for having to pay the landlords cost/fees for having to take you to court.
I hope I have put things into perspective for you. Kindly let me know if I may be of further assistance. Kindly take the time to rate the services received.
All the best
You are welcome. How much is your rent?
Between £60 to £70
You are most welcome
I would have advised him to try to negotiate/mediate with you.
You are welcome