A forestry market research study by Savills and Scottish Woodlands concluded than more than 18,300 hectares (45,220 acres) of forestry was sold during the year 2016 at £83 million (US$104 million).
While the average price per acre may have fallen throughout the whole market when compared to the levels witnessed in 2015, the drop can be attributed to the considerable changes in the market by region. An estimated 80 per cent of all the property sold was north of the Forth-Clyde canal.
Demand for timber grown and harvested in the United Kingdom (UK) has increased over the year, and further boosts are expected even as Britain shifts into a world post-Brexit. The research study has indicated that UK forest products have the chance to be more widely utilised in construction works if the European Union (EU) trade regulations undergo revisions.
“Our research suggests plantation values will rise over the medium term, albeit at a slightly slower pace and we forecast 32 per cent growth in forest values over the next five years, with scope for further growth if timber prices rise above expectation,” Savills Head of forestry investment UK, James Adamson, said during an interview with Forestry Connect. “Although UK timber markets will fluctuate from year-to-year, the prospect of a longer term upward trend in timber pricing structures is very real, making us confident in the future of forestry as an asset. The UK forestry market has continued to demonstrate strong performance and remains a highly desirable alternative asset class.”
Source: Forestry Connect