The Nationwide is the latest lender to say it will not insist its buy to let borrowers enforce a No DSS policy.

In a statement to the media Paul Wootton, Nationwide’s Director of Home Propositions, says that everyone should be able to access a safe and secure home and No DSS restrictions denies this right to a group of people who are often in desperate need of somewhere to live. 

He adds: “Nationwide is categoric on this issue – we do not place restrictions on landlords that could stop them letting a home to tenants in receipt of benefits.

“Recent interest in this issue, most notably from the Work and Pensions Select Committee and Shelter, with whom we have worked closely for a number of years, caused us to review both our own historic lending, and the terms of those societies we took over during the financial crisis. 

“As a result, we identified and started contacting around 12,000 mortgage customers to reassure them that Nationwide has never and will never enforce any historic clauses, which might restrict them from letting to tenants in receipt of benefits, which their original mortgage terms may contain.

“The increased focus on this issue is welcome, as are positive moves made by others, and we urge everyone, including lenders, agents and landlords, to consider what they can do to end this unfair approach. Tenants need certainty and consistency and the industry needs a unified approach if we are to make a real impact.

“While it’s imperative that any blanket lettings restrictions are lifted, government needs to ensure that the benefits system works properly to provide confidence for landlords.”

Earlier this month the NatWest adopted a similar policy and last week Zoopla insisted that it would no longer carry any rental listings with the No DSS restriction – a move that has been praised by some landlord groups.