Call for earlier financial education for renters

Financial conversations around renting should begin much earlier in life because a lack of understanding is leaving many first-time renters anxious and unprepared, research reveals.

According to rental guarantor service, Housing Hand, just 2% of renters said they received any information at school about managing housing-related finances.

And the company’s Understanding Renters in 2025 report highlights that a striking 82% wished they had learned more about money before entering the rental market.

The findings come ahead of Talk Money Week which runs from 3 to 7 November.

That’s run by the Money and Pensions Service to get people talking more openly about their finances.

Equip renters with knowledge

The firm’s managing director, Graham Hayward, said: “The average person buys their first home at age 33 – two years older than a decade ago.

“Many spend years renting before they buy, so why don’t we equip renters with the financial knowledge they need to make that experience more positive?”

He added: “The earlier we start talking about housing-related financial literacy, the more confident people can be when they enter the rental market.”

Jeremy Robinson, the group’s founder and chief executive, said: “Talk Money Week presents the ideal opportunity to address financial knowledge gaps that could drive up these figures significantly.

“As the Renters’ Rights Bill returns to the House of Lords, can we please make renters’ financial knowledge a priority, too?”

Tenants stressed by renting

For many tenants, the experience of renting is defined by stress rather than excitement.

Among those surveyed, 25% said they felt overwhelmed, 22% felt uncertain and 21% anxious when entering the rental sector for the first time.

Only 5% said they were excited and 4% happy.

The lack of awareness around core housing costs and systems appears to be a key factor.

The report found that 65% of renters didn’t know about deposit-free rental schemes and 46% were unaware of how deposit protection works.

Plus, 37% didn’t know how to set up utility accounts.

Can’t pay rent questions

More than half (58%) of respondents said they wouldn’t know what to do if they couldn’t pay rent.

The study, which surveyed 1,700 working professionals and students, found that renters typically turn to informal sources for advice.

Thirty-eight per cent look to websites, 31% to family and 15% to friends.

Just 2% reported getting information on this from school.