81% of new renters feel overwhelmed, uncertain, anxious, scared and out of their depth

A comprehensive new report from UK rental services provider Housing Hand has revealed fascinating insights into the UK private rented sector and tenants’ levels of rental financial literacy. The new report – Understanding Renters in 2025 – reveals a landscape of uncertainty, knowledge gaps and vulnerabilities across the UK rental sector.

One of the key insights reveals how new renters feel about finding their first property. Instead of excitement or happiness (felt by 5% and 4% respectively), new renters feel overwhelmed (25%), uncertain (22%), anxious (21%), scared (9%) and out of their depth (4%). Concerns range from an inability to find a suitable or affordable property to not being accepted by the landlord if they do find one.

The Housing Hand report, which was based on a survey of over 1,700 working professionals and students currently renting in the UK, identified significant knowledge gaps relating to rental finances. For example, it uncovered that 46% of renters don’t know how deposit protection schemes work and 63% don’t know how long it takes to get their deposit back. And, while 94% of the Housing Hand applicants that we surveyed know what a guarantor is now, only 66% said they knew what it was before being asked to provide one; 34% had no idea what a guarantor was at the point of learning they needed one.

Survey respondents also emphasised their preference for professional guarantor services – 38% of respondents would prefer to use a guarantor service, compared to 23% preferring to rely on parents, 15% on friends and 15% on wider family. The figures highlight renters’ appreciation for professional guarantor services, which give them greater independence and access to a wider range of properties.

Renters were largely uncertain about what to do if their financial circumstances changed. 58% stated they wouldn’t know what to do if they couldn’t pay their rent, while 67% of those in shared households don’t know what will happen if a housemate doesn’t pay rent.

Knowledge gaps across the rest of the rental process ranged from 65% of renters being unaware of the existence of depositless renting schemes to 33% not knowing what would happen if they paid their rent late. Utility bills were also a stumbling point, with 37% of renters not knowing how to set up utilities contracts – an important issue given the current energy cost rises.

Layering over this existing landscape of uncertainty comes the proposed Renters’ Rights Bill, which reached Committee Stage in the House of Lords on 22nd April, as it continues its passage towards becoming law. The Housing Hand survey found that 69% of private renters are unaware of the Bill, while 75% don’t know how it will impact them.

“As a sector, we need to work together to get better at ensuring renters have the information they need to understand the full financial implications of renting a home. This is particularly important with the proposed Renters’ Rights Bill heading through Parliament. There is also a crucial role for the education system to play in supporting young people to understand rental finances. 82% of those we surveyed said they would have liked more financial education at school. This presents a huge opportunity to level up rental financial knowledge for future generations.”

Graham Hayward, Managing Director, Housing Hand