The homeless charity Shelter has warned that proposed tax breaks for second homes will encourage more buy-to-let investors and could prevent first time buyers from entering the market. From April investors will be able to include residential property in self-invested personal pensions (SIPPs). Properties invested in a pension will qualify for tax relief of 22% for basic rate tax-payers and 40% for higher rate ones. Shelter and the Affordable Rural Housing Commission have said the new regulations could spark a boom in second home ownership. Shelter said: “The new self-invested personal pension scheme risks worsening an already dire situation by providing financial incentives for people to buy second homes.” Ronnie Ludwig, partner at accountancy firm Saffrey Champness, said: “It is estimated that £11 billion will go into the property market through Sipps when the new rules come in next year and this will obviously have an effect on property prices, even if it’s just in the short term.” (FT)