Previously, the lender’s list of exclusions on its buy-to-let range included student lets, tenants claiming housing benefit, rent rebates or rent allowance, asylum seekers and tenants benefiting from diplomatic immunity.

With immediate effect, the lender is willing to offer loans on properties with a maximum of five occupants, a stipulation attached to all properties.

The lender confirmed it has never lent on Houses of Multiple Occupation, where tenants sign individual tenancy agreements.

The lender said: “We regularly review our lending policies and make changes when we feel it is necessary to do so. The private rental sector is playing an increasingly important role in supporting the demand for housing in the UK and as such we are taking the necessary steps to update our policies to support this.”