FT News Briefing The housing supply problem: Part I
May 25, 2023
UK gilt yields are climbing, reflecting economic uncertainties and market shifts. Meanwhile, Australia is grappling with a scandal involving PwC's confidential information leaks, now under police investigation. A personal narrative from Asheville highlights the housing supply crisis in the U.S., revealing the struggles of a couple facing skyrocketing prices and high mortgage rates. These intertwined issues paint a stark picture of today's housing market challenges and broader economic implications.
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UK Inflation and Gilt Yields
- UK April inflation data showed lower overall prices than March but remained higher than Bank of England expectations.
- Core inflation rose, causing UK bond market anxieties and a surge in two-year gilt yields.
PwC Tax Leak Scandal
- PwC Australia leaked confidential government tax information to clients, leading to a scandal.
- The firm faces investigation, reputational damage, and the risk of global brand impact.
Housing Market Challenges
- The US housing market is extremely challenging, with pandemic-driven price increases and high mortgage rates.
- Homeownership, a crucial path to wealth-building, is becoming less attainable.