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Hi ,

Can both of the two referees " personal friends of you"?

I have asked my referees to fill in section 5 and both answered " how do you know the applicant " question by stating " I am a personal friend of the applicant " which they are and both of them are british abd professional.

Is this ok?

Yes.
The requirement of a professional referee doesn't mean he knows you in a professional capacity, just that he is a professional.