The Co-operative Bank has removed its letting conditions which previously restricted landlords from letting to tenants on housing benefits.
From 1 April the bank will no longer enforce the above listed letting condition.
However, the bank adds, the clause wording will remain in some documentation until a final system update on 19 May.
This change will be replicated across all lending brands of The Co-operative Bank.
The Co-operative Bank managing director Gordon Soutar comments: “We are glad to be able to remove this condition to the benefit of our landlords and prospective tenants who previously may have been restricted from taking up tenancy due to the inclusion of this letting condition in our mortgage terms and conditions.
“Our charity partner Centrepoint have raised this issue and the potential impact that this condition of let could have on the young people they work with.
“This is not a condition that we want to continue to include in the mortgages that we offer, and we will no longer enforce these clauses in our mortgage terms and conditions.”