UK new tenancy rents hit 13-month high; net migration falls to five-year low amid comprehensive tightening of visa policies

Follow Property News to see today’s key developments: ・ New tenancy rents across the UK posted their largest 13-month annual increase, led by northern cities; rental yields on residential buy-to-let properties continue rising. ・ The number of new home developments nationwide fell to a nine-year low, tightening market supply. ・ A £2 billion tunnel proposal linking Manchester and Sheffield has been unveiled—potentially boosting connectivity across northern England. ・ KKR is leading a £5.7 billion acquisition of DCC, as overseas private equity continues aggressively acquiring UK-listed companies. ・ UK net migration has dropped to its lowest level in five years, with visa policies comprehensively tightened. 1. New tenancy rents hit 13-month high, led by northern cities The UK’s rental market strengthened further in June. According to the latest data from Hamptons, the average monthly rent for newly signed tenancies across the UK rose to approximately £1,392—up 1.6% year-on-year—the fastest annual growth in 13 months. This upswing was driven primarily by northern England, where rents in the North East surged 4.3% year-on-year to £859. London also delivered positive news: rents in Outer London ended a year-long stagnation and returned to positive growth, rising 1.9% year-on-year. Including both new tenancies and renewals, overall rental prices across the market rose 2.2% year-on-year. For overseas buy-to-let investors, these figures are highly tangible. Steadily rising rents directly translate into improving cash-on-cash returns. Northern cities and Outer London currently represent the strongest growth pockets—worthy of close attention. 2. Number of new home developments hits nine-year low Supply-side tightness became especially evident in June. Rightmove’s tracking of over a decade of development project data on its platform shows that the number of newly launched residential developments across the UK has fallen to the lowest level since January 2017—marking a nine-year low. This stands in stark contrast to the current government’s target of delivering 1.5 million new homes during its term. Across the broader market—including both new builds and existing stock—the total number of homes for sale is now 85% higher than four years ago. Yet genuinely well-located, affordable homes remain scarce. Rightmove used this data to urge the upcoming Autumn Budget to abolish stamp duty for first-time buyers and significantly increase investment in affordable housing. Major housebuilder Barratt Redrow noted that rising regulatory costs, elevated mortgage rates, and weak buyer confidence are making it increasingly difficult to deliver new homes. For overseas buyers, the implication is straightforward: Persistently constrained supply of high-quality, well-located new homes supports both capital values and rental income for existing properties. 3. A £2 billion tunnel proposal linking Manchester and Sheffield A proposed tunnel connecting Manchester and Sheffield has drawn considerable attention recently. The plan—put forward by infrastructure consultancy Future Works—involves constructing a 14-mile (approx. 22 km) dual-carriageway tunnel beneath the Peak District, alongside reinstating the long-abandoned Woodhead railway line. Modelling suggests the tunnel could cut travel time between the two cities by up to 30 minutes and divert roughly 20,000 vehicles daily from surface roads within the National Park underground. Cost remains the most closely watched aspect of the proposal.

KKR launches another acquisition: £6 billion!

No formal acquisition agreement has yet been signed. UGI may leverage KKR’s offer to trigger a competitive bidding process. According to sources familiar with the matter, the parties have not yet signed a definitive acquisition agreement, and the transaction remains subject to substantial uncertainty—there is no guarantee it will ultimately close. Nevertheless, following the announcement, UGI’s share price surged over 12% intraday. This acquisition proposal was initiated unilaterally by KKR and constitutes a non-binding, indicative offer submitted solely by the buyer—no exclusivity or negotiation rights have been granted. The proposed transaction values UGI at $9 billion—or approximately $42.50 per share—representing a 21.1% premium over UGI’s closing share price of $35.09 on 17 August. The deal is expected to be structured as an all-cash transaction. Upon completion, UGI would be delisted from the New York Stock Exchange and become a portfolio company controlled and operated by a KKR-affiliated fund. Currently, UGI’s Board of Directors—advised by financial advisors—is evaluating KKR’s proposal to assess whether the offer price is fair and whether to proceed to formal negotiations. Simultaneously, to safeguard shareholder interests, the Board may opt to open a formal auction process, inviting other private equity firms or strategic buyers to submit competing bids—aiming for the highest possible value. KKR’s prominent reputation makes it a useful catalyst; yet its formidable financial strength may also deter certain potential bidders. Since 2026, KKR has consistently intensified its focus on energy infrastructure: in June, it announced a ~$4.2 billion acquisition of EDF Power Solutions’ North American business; around the same time, it participated in the £5.75 billion acquisition of DCC Energy. This offer for UGI represents another move by KKR’s infrastructure-focused private equity funds. UGI’s share price plunged 8.44% shortly before the announcement—prompting KKR to swiftly launch its acquisition bid. According to publicly available information, UGI Corporation was founded in 1882 and is headquartered in Pennsylvania. It operates as an integrated energy distribution services provider across the United States and Europe. Its core businesses comprise four segments: Utilities; Midstream & Marketing; UGI International; and AmeriGas propane retail operations.

DCC Energy Shareholders Approve £5.7 Billion Bid by KKR, ECP

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DCC Energy shareholders approved a £5.7 billion takeover by KKR and Energy Capital Partners for its fuel and gas business. The deal closes in Q1 2027, removing one of the last Irish FTSE 100 names.

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DCC Energy Shareholders Approve £5.7 Billion Bid by KKR, ECP

DCC Energy Shareholders Approve £5.7 Billion Bid by KKR, ECP

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