Are student renters financially literate?

UK rental services provider Housing Hand has shared detailed insights into the student rental market, identifying a range of areas where students would benefit from extra support within the rental process.

The firm’s Understanding Renters in 2025 report shows that, while 71% of students consider themselves financially literate when it comes to renting, there are significant knowledge gaps that could lead to smoother rental experiences if filled.

“There are fundamental differences between student renters and other tenants. Our latest research provides exceptional insights into the nuances and surprising differences of the student rental market, showing clearly why a tailored approach is so important when renting homes to students,” said, Graham Hayward, Managing Director, Housing Hand

Housing Hand surveyed 932 students, asking them about a range of aspects of rental finances. The company’s research revealed that 48% of students don’t know how their credit score relates to renting a property, while 20% don’t know what a credit score is. 70% don’t know about depositless rental schemes and 38% didn’t know what a guarantor was at the point they were asked to provide one. Furthermore, 53% of student renters don’t understand how tenancy deposit protection schemes work and 67% don’t know how long it takes to get their deposit back through the tenancy deposit protection process.

These knowledge gaps highlight students’ particular vulnerabilities from the very outset of the rental process, meaning securing a property is likely to be more stressful and time-consuming for them.

Once they’ve found a property, student renters’ lack of knowledge continues to impact their experience. 53% don’t know how to set up utilities contracts, 28% don’t know how to set up a direct debit and 53% don’t know that contents insurance is the tenant’s responsibility. Looking ahead, 33% don’t fully understand what will happen at the end of their tenancy and 44% don’t know how much notice they need to give.

Also worrying from a legal perspective is that 33% of students don’t know if their tenancy is on a joint or individual basis and 35% don’t understand the difference between the two. Given the changes to tenancies proposed by the Renters’ Reform Bill, this is particularly concerning. Indeed, the Housing Hand survey found that 76% of students don’t understand how the proposed Renters’ Rights Bill may impact them when it comes into force.

“We need to ensure that student renters understand their legal commitments and responsibilities in terms of contracts and notice periods. With the proposed Renters’ Rights Bill moving rapidly towards becoming law, there is an opportunity that we must not miss to better support students throughout the rental process. Providing them with timely, relevant information in a clear, easily digestible format should be a core part of the rental service that all those in the sector deliver, from landlords and letting agents through to purpose-built student accommodation operators.”

James Maguire, Sales and Business Development Director, Housing Hand

Housing Hand already offers comprehensive support to help renters understand their financial and legal commitments. The team provides step-by-step guidance and clear instructions throughout the application process for its guarantor service and via its online help centre. It also provides dedicated customer support, ensuring every student renter has a direct, knowledgeable contact for any questions they may have. The company’s services are also designed to support student renters. Its guarantor service covers all costs incurred from a rental default, including damages exceeding the deposit, while its Only My Share offering protects students from joint and several liability agreements, ensuring they are only responsible for their share of the rent.

Further details of students’ rental financial literacy can be found in the Understanding Renters in 2025 report, which is now available for download.