Empowering with information: helping Gen Z understand renting

The results of a new survey by Housing Hand has revealed mystery surrounding the rental sector, despite the UK being home to approximately 11 million private tenants. 

The Understanding Renters in 2025 report made for fascinating reading, with 1,700 working professionals and students renting privately across the UK sharing their understanding of key rental concepts.

Finance knowledge falls short

Almost half (45%) of Gen Z renters do not understand how a credit score affects their rental options.

Your credit score reflects how well you have managed money in the past, especially your borrowing and repayment habits. 

A credit score gives landlords a quick snapshot of how likely it is you’ll be able to pay the rent. Experian has a great guide to how a credit score is calculated, with advice on what you can do to improve your score ahead of renting a property.

A credit score may form part of a wider set of credit checks undertaken by your landlord or letting agent. You may be asked to supply a reference from your employer, as well as show wage slips and bank statements, especially if your credit score is on the low side. Bankruptcies, County Court Judgements and debt relief orders will all show up and you may be classed as a high risk tenant.

Discrimination & credit checks

You may have read that the Renters’ Rights Act has made it illegal for landlords to discriminate against tenants who receive benefits. This is true but to be clear, a landlord isn’t forced to rent a property to tenants just because they receive benefits. A landlord can reject an application based on credit checks and a lack of affordability, whether the tenant receives benefits or not.

With landlords now limited to asking for one months’ rent in advance, they’re looking elsewhere for financial security. It’s more likely you’ll need a guarantor when renting but 35% of Gen Z didn’t know what a rent guarantor was when first asked to provide one.

Plan B if you can’t pay the rent

A guarantor is someone who steps in and pays the rent when the tenant can’t, reducing the risk that arrears happen. While more people fixate on who can become a guarantor (it can be family or a close friend), the most important aspect is qualification.

Your nominated guarantor must themselves be financially secure enough to pass the letting agent’s credit checks. They can’t be in serious debt, plus they’re more likely to pass referencing if they are in employment, can prove substantial savings or own their own home. 

Citizens Advice has produced this guide to understanding the role of a rental guarantor – essential reading given 59% of survey participants would not know what to do if they could not pay their rent. If a guarantor is in place, they’ll be called upon to pay. But what if there’s no guarantor?

An update to rental arrears evictions

Tenants with rent arrears now have better protection, thanks to the Renters’ Rights Act. Your landlord can only start the eviction process using Ground 8 if you owe at least 3 months’ rent (if you pay rent monthly), or at least 13 weeks’ rent, if you pay rent weekly or fortnightly. Additionally, your landlord must give you 4 weeks’ notice before they can apply to the court for a possession order to evict you for arrears. 

Give and take: deposits explained

Finally, we’re pleased to offer more information about tenancy deposits, especially as 50% of under 30s were not aware of deposit protection schemes. We ensure every tenancy deposit taken is placed in a Government-approved deposit protection scheme (you can find a list of these here). This ensures your money is safely held by a legitimate third party or protected by insurance.

We also want all our tenants to receive their full deposit back at the end of the tenancy. We encourage this by clearly setting out a renter’s upkeep, maintenance and behaviour responsibilities in our tenancy agreements.

With 66% of Gen Z unsure about how the deposit return process works, we can explain in more detail how a red wine stain on the carpet, an unapproved drill hole in a wall or a flea infestation can scupper your chances of a full deposit refund.

We’re here to help

Our experienced team of lettings experts is on hand to answer all your renting questions, no matter how silly they sound. Call, email or message us if anything is unclear - whether that’s your rights as a tenant or if you don’t understand something in your contract.