"As a sector, we need to work together to ensure renters have the information they need to understand the full financial implications of renting a home"
- Graham Hayward - Housing Hand
A new report from Housing Hand has unveiled critical insights into the challenges facing renters in the UK today, exposing widespread uncertainty, knowledge gaps, and financial vulnerabilities within the private rental sector.
The Understanding Renters in 2025 report, based on a survey of around 1,700 working professionals and students currently renting in the UK, paints a sobering picture of the rental experience.
An overwhelming 81% of new renters reported feeling overwhelmed, uncertain, anxious, scared, or out of their depth when securing their first rental property. Only a small minority associated the process with positive emotions such as excitement (5%) or happiness (4%).
New renters cited a variety of concerns, including the difficulty of finding a suitable or affordable property and the fear of being rejected by landlords.
The survey also revealed major gaps in renters’ financial literacy. Key findings include:
46% of renters do not understand how deposit protection schemes work.
63% of renters are unaware of how long it typically takes to receive their deposit back.
While 94% of Housing Hand applicants now understand what a guarantor is, only 66% knew before being required to provide one, leaving 34% initially unaware.
Professional guarantor services are increasingly seen as a preferred option. 38% of respondents said they would rather use a guarantor service, compared to 23% who would rely on parents, and 15% who would turn to friends or wider family members. This trend highlights a desire among renters for greater financial independence and access to a broader range of rental options.
Alarmingly, 58% of renters admitted they would not know what to do if they found themselves unable to pay rent. Among those in shared accommodation, 67% were unsure of what would happen if a housemate failed to pay.
Further knowledge gaps surfaced across multiple areas of the rental process:
65% were unaware of depositless renting schemes.
33% did not know the consequences of late rent payments.
37% lacked understanding of how to set up utility contracts, an issue made more urgent by ongoing energy price increases.
The report's findings are especially timely as legislative changes loom. The proposed Renters’ Rights Bill, which reached the Committee Stage in the House of Lords on 22 April, aims to reform the rental landscape. Yet, 69% of renters surveyed were unaware of the bill's existence, and 75% did not know how it might affect them.
Graham Hayward, Managing Director at Housing Hand, emphasised the urgent need for better education and support for renters:
"As a sector, we need to work together to ensure 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 progressing through Parliament," he said.
"There is also a crucial role for the education system to play. An overwhelming 82% of those surveyed said they would have welcomed more financial education at school. This presents a huge opportunity to improve rental financial knowledge for future generations."
