Gen Z renters lack knowledge of credit scores and rent rules

More than seven in 10 of Gen Z renters felt overwhelmed, uncertain or anxious when first looking for a home to rent, research reveals.

Figures from Housing Hand’s Understanding Renters in 2025 report, highlight several gaps in knowledge about the basics of renting.

Gen Z is those aged between 12 and 29, and of the tenants surveyed, 85% said they did not receive enough financial education at school to prepare them for renting.

As a result, 36% said they turn to family members for advice and 31% rely on websites, while 16% seek guidance from friends.

The firm’s sales manager, Dani Smith, said: “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.

“The Renters’ Rights Act presents a huge opportunity to address a range of issues in the rental sector, including knowledge gaps among tenants.”

Unsure about financial checks

The findings also show uncertainty around financial checks used by landlords and letting agents.

While 82% of Gen Z renters said they know what a credit score is, 45% said they do not understand how it affects their ability to secure a home to rent.

Knowledge of standard tenancy requirements appears uneven with 35% of respondents admitting they did not know what a rent guarantor was.

Just 32% said they knew about depositless rent schemes, while half of respondents, said they were aware of tenancy deposit protection schemes.

Overwhelmed looking for a home

When asked how they felt when starting the search for a property, respondents aged 16 to 30 most often selected negative responses.

Around 26% said they felt overwhelmed, 20% uncertain, 19% anxious and 8% scared.

The survey also asked how younger tenants would respond if they encountered financial difficulty.

Among those surveyed, 59% said they would not know what to do if they could not pay their rent.

In that situation, 84% said they would turn to their parents for support.

And two-thirds of respondents, said they were uncertain about how the deposit return process works.