2018 in preview: Richard Jones, IPS Estates
Richard Jones, director of Ilkeston-based IPS Estates, gives us his three predictions for business in 2018.
1. We appear to have moved from the “industrial age”, to the “information age” and are now in the “debt age”. The consumer is spending money after a 10 year period of low interest rates, yet wages appear to have been stagnant, and unlike years gone by, debt seems to be a far more acceptable part of society now because of this. Consumer and business debt will rise in 2018, as “debt” continues to be the greatest proportion of money in circulation. In the future, cash in circulation will become less and less, in favour of the convenience of electronic payments.
2. I also predict one interest rate rise of 0.25% in 2018, but no more, as the Bank of England tries to balance recovery of the economy with raising rates.
3. In terms of our industry specifically, many residential property landlords are exiting the private rented sector, due to new tax legislation that has just been introduced, making it unattractive for an “employed individual” to use residential buy to lets as an investment vehicle for retirement. Those investors entering the market, will do so using a limited company vehicle, as opposed to a sole trader or partnership.
