- Most young renters say they lacked financial education at school.
- Many remain unclear about credit scores, deposits and legal rights.
- Anxiety and uncertainty are common at the start of the renting journey.
Young renters across the UK appear to be stepping into the housing market with more questions than answers, with new research pointing to widespread confusion around finances, legal rights and the basics of renting. The findings, from Housing Hand’s Understanding Renters in 2025 report, suggest knowledge gaps remain a key challenge for people under 30 trying to navigate the private rental sector.
The report, based on a survey of 1,700 renters including students and working professionals, focuses on responses from 1,125 people aged between 16 and 30. It highlights what looks like a lack of preparation among younger tenants, with many saying they feel unsure about core aspects of renting in the UK.
Learning on the go
A large majority, around 85 per cent, said they did not receive enough financial education at school, leaving many to rely on informal advice when making decisions about renting. Family remains the most common source of guidance, followed by online research and conversations with friends, though changing rules in the sector mean some of that advice may no longer be accurate.
Understanding of financial tools also appears uneven. While most respondents said they were aware of credit scores, nearly half were unclear about how those scores could affect their chances of securing a property. More than a third said they did not know what a rent guarantor was when first asked to provide one, and awareness of deposit-less rental schemes and deposit protection rules was described as limited.
These gaps seem to shape how young renters feel when starting their search. Many reported feeling overwhelmed, uncertain or anxious, with a smaller share saying they felt scared at the outset of the process.
Questions do not appear to stop once a tenancy begins. Nearly six in 10 respondents said they would not know what steps to take if they were unable to pay rent, with most saying they would turn to their parents for help. There is also confusion around the end of tenancies, with many unsure how the deposit return process works.
Awareness of upcoming legal reforms also appears low. When asked earlier in 2025, more than two thirds said they had not heard of the Renters’ Rights Bill, and many were unclear about what the changes could mean for them, despite expectations that the legislation will strengthen tenant protections.
“Young people should feel excited about heading out into the world and renting their first home, but lack of knowledge is denting confidence and negatively impacting the experience from the start,” Dani Smith, sales manager at Housing Hand, reportedly said.
The Ministry of Housing, Communities and Local Government said the reforms will “give 11 million renters stronger rights, better protections and more security in their homes,” as quoted in a news report.
“The Renters’ Rights Act presents a huge opportunity to address a range of issues in the rental sector, including knowledge gaps among tenants,” Smith added, reportedly said, noting that efforts will continue to help younger renters better understand their rights.
Taken together, the findings suggest that while renting remains a key step for many young people, navigating the system still appears far from straightforward, particularly as rules evolve and financial pressures remain.
