## Gen Z Renters Struggle with Financial Education for Renting

New research from Housing Hand’s *Understanding Renters in 2025* report highlights significant knowledge gaps among Generation Z tenants aged 12 to 29 regarding the basics of renting. More than seven in ten of these young renters reported feeling overwhelmed, uncertain, or anxious when first searching for a home to rent. A striking 85% said they did not receive sufficient financial education at school to prepare them for the rental market.

This lack of preparation means that many Gen Z renters turn to informal sources for guidance: 36% rely on family members, 31% consult websites, and 16% seek advice from friends. Dani Smith, Housing Hand’s sales manager, commented: “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.” She also noted that the upcoming Renters’ Rights Act offers an opportunity to address these knowledge gaps within the rental sector.

## Uncertainty Around Credit Scores and Tenancy Requirements

While 82% of Gen Z renters say they understand what a credit score is, nearly half (45%) do not know how it affects their ability to secure a rental property. This uncertainty extends to other common tenancy requirements: 35% of respondents admitted they did not know what a rent guarantor is, and only 32% were aware of depositless rent schemes. Awareness of tenancy deposit protection schemes was higher but still limited, with only half of those surveyed familiar with them.

For landlords and letting agents, this uneven understanding may lead to increased questions and potential delays during the application process. It emphasises the importance of clear communication and education about financial checks and tenancy conditions to support younger tenants.

## Emotional Impact of Searching for a Rental Property

The survey also explored how Gen Z renters felt when starting their property search. Negative emotions were prevalent: 26% felt overwhelmed, 20% uncertain, 19% anxious, and 8% scared. These feelings can affect decision-making and engagement with the rental process.

When facing financial difficulties, 59% of younger tenants said they would not know what steps to take if unable to pay rent, with 84% stating they would turn to their parents for support. Additionally, two-thirds of respondents were uncertain about how the deposit return process works.

## What This Means for Landlords and Letting Agents

The findings underscore the need for landlords and agents to provide clear, accessible information about credit checks, guarantors, deposit schemes, and tenant rights. Supporting Gen Z renters through education could improve tenant confidence, reduce misunderstandings, and foster better landlord-tenant relationships.

The introduction of the Renters’ Rights Act may help address some of these issues by standardising tenant protections and information provision. Landlords should prepare to engage proactively with younger tenants who may require additional guidance during the rental process.