moving into a second year house

hi, currently in the process of getting the rest of my deposit for my second year house and wanted to make sure i’m not being majorly ripped off (which i know is what landlords are born for). so i’m moving in with 6 other close mates, bills included we are paying £168pppw, which is across a 52 week contract, so ~£8736 a year (i live in bristol, this was the cheapest we could find). in terms of deposit, we put down the first months rent as a holding (£672 each), but are now required to pay our damage and security deposit, which is ~£1560 each before 2 days before we move in. am i going insane or is this a ludicrous amount to be putting down as a deposit??