The bank says it will use the Right to Buy discount in place of a direct deposit. Borrowers will also have access to the reduced rates available for lower loan-to-value (LTV) mortgages.

Lending is capped at 90% of the full market value to ensure responsible borrowing and it excludes high-value properties where a deposit is still required.

Barclays head of mortgages Lee Chiswell says: “The Right to Buy scheme has long been a crucial route to home ownership for council and housing association tenants, yet we know that saving for a deposit remains a key obstacle.”

“By lending for the full value of the property, we’re removing the need for buyers to have any deposit at all, helping many completely sidestep their largest barrier to home ownership.”