ssh -v produced the following logs. I did login as the user with the password and did chmod 755 ~ logged out and in again but no difference
debug1: Connection established.
debug1: permanently_set_uid: 0/0
debug1: identity file /root/.ssh/id_rsa type 1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_rsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_dsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_dsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_ecdsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_ecdsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_ed25519 type -1
debug1: key_load_public: No such file or directory
debug1: identity file /root/.ssh/id_ed25519-cert type -1
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_7.2
debug1: Remote protocol version 2.0, remote software version OpenSSH_6.7p1 Debian-5+deb8u3
debug1: match: OpenSSH_6.7p1 Debian-5+deb8u3 pat OpenSSH* compat 0x04000000
debug1: Authenticating to archive.mydomain.com:22 as 'kdluser'
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: algorithm:
curve25519-sha256@libssh.org
debug1: kex: host key algorithm: ecdsa-sha2-nistp256
debug1: kex: server->client cipher:
chacha20-poly1305@openssh.com MAC: <implicit> compression: none
debug1: kex: client->server cipher:
chacha20-poly1305@openssh.com MAC: <implicit> compression: none
debug1: expecting SSH2_MSG_KEX_ECDH_REPLY
debug1: Server host key: ecdsa-sha2-nistp256 SHA256:6jWlGXLw39LohwMyv27s1SGyl0obeK7qVK64Mk6l6kw
debug1: Host 'archive.vostel.co.uk' is known and matches the ECDSA host key.
debug1: Found key in /root/.ssh/known_hosts:1
debug1: rekey after 134217728 blocks
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: rekey after 134217728 blocks
debug1: SSH2_MSG_NEWKEYS received
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey,password
debug1: Next authentication method: publickey
debug1: Offering RSA public key: /root/.ssh/id_rsa
debug1: Authentications that can continue: publickey,password
debug1: Trying private key: /root/.ssh/id_dsa
debug1: Trying private key: /root/.ssh/id_ecdsa
debug1: Trying private key: /root/.ssh/id_ed25519
debug1: Next authentication method: password
newuser@archive.mydomain.com's password:
debug1: Authentication succeeded (password)