A new report reveals that renters typically feel confident in their knowledge when entering the rental process, with 73% considering themselves financially literate when it comes to renting. However, the detailed findings show some significant gaps in that knowledge.
Some 46% of renters, for example, do not know how deposit protection schemes work, while 63% don’t know how long it takes to get their deposit back from these schemes. In addition, 65% of renters don’t know that depositless renting schemes exist. And, while landlords and rental accommodation providers across England are preparing for the proposed Renters’ Rights Bill to become law, 69% of their tenants have never heard of it.
Worryingly for landlords, 33% of renters report not knowing what would happen if they paid their rent late, while 58% wouldn’t know what to do if they found themselves unable to pay. For those living in shared households or sharing a tenancy agreement, 67% don’t know what would happen if one member of the household doesn’t pay their rent.
James Maguire, sales and business development director, Housing Hand, which compiled the report, commented: “Knowledge gaps such as these create a breeding ground for misunderstandings and potential issues. Open, clear dialogue and the provision of rental financial information in a digestible format would create positive communication channels between landlords and tenants and help to fill some of these gaps in understanding.”
When it comes to filling this knowledge gap, 82% of those surveyed would have liked more financial education in school. Clearly, there is a missed opportunity in how unprepared young people are for the realities of managing their homes and finances when they leave formal education. Of those surveyed – who included both working professionals and students – 31% report that they get information on managing their housing-related finances from family members, while 15% get information from friends. 38% turn to the internet to try and find the information they need, while 9% rely on social media. Just 6% of renters got information on managing their household finances from their university and just 2% from their school.
UK rental services provider Housing Hand has launched the new report to help better understand renters in 2025 – combining the findings from a survey of over 1,700 UK-based renters with in-depth tenant focus groups.
Graham Hayward, managing director, Housing Hand, said: “Our research finds that, while the majority of private renters consider themselves financially literate when it comes to renting, there are significant gaps in their knowledge that pose a risk to harmonious tenant-landlord relationships. With the Renters’ Rights Bill set to deliver the biggest change to renting in a generation, the potential for knowledge gaps to cause issues grows exponentially. As such, we are calling on landlords and other accommodation providers to use our new research to help underpin more informed, smoother tenant relationships.”
He added: “The Renters’ Rights Bill is moving through Parliament towards becoming law but, as our report reveals, renters haven’t had sufficient support in understanding all aspects of their current financial commitments, let alone how the Bill may impact them. There is a significant opportunity here for landlords and others in the sector to work with renters for the benefit of all those involved in the rental process.”
