The DCLG were insisting that all deposits required protecting within 14 days of 1 October 2010 for tenancies that convert to assured shorthold tenancies after the rent threshold increase.
However it is being widely reported that they have revised their position after several commentators including this website said it wasn’t necessary. They now say:
We do not consider that deposits taken before 1 October will need to be protected as these were not taken in connection with a shorthold tenancy and therefore do not meet the criteria for protection specified in the Housing Act 2004.
However, agents and landlords should be aware that this is a matter for the Courts to decide and it would be wise to protect deposits on 1 October and certainly on any renewal of the tenancy.
Our guidance on the AST threshold increase is here