Barclays has become the latest major lender to allow first-time buyers to borrow money to buy a property to let rather than to live in.

It joins NatWest and a number of smaller building societies in offering buy-to-let mortgages to younger buyers who do not already own property.

This sort of offer, the bank claims, could help young people living in expensive regions like London, who are priced out of their local area, by allowing them to get on the property ladder in a cheaper region. They would thus earn a rental income and participate in potential house price growth.

Mortgage brokers were notified last week and Barclays's policy changed on Thursday. The note reads: “This change offers an alternative way of helping first time buyers get onto the property ladder.

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“For example, a young professional currently working and renting in an area with higher than average house prices, such as London, might be looking to purchase a property to rent out as an investment.”