The forestry market has had an “astonishing yr” with aggressive bidding seeing common values rise considerably and the whole worth of the forestry funding market attain file ranges, in response to the newest version of the UK Forest Market Report.
The twenty second version of the annual report, produced by Tilhill and John Clegg & Co, highlights that the forestry and woodland sector has a really optimistic outlook.
The report reveals that in 2020 a complete of £200.18 million of forestry properties traded, the very best worth traded on file, with the common value of a forest property greater than doubling from £1.56 million in 2019 to £3.28 million in 2020.
Key findings embrace:
- 39% enhance in forestry values from £11,749 per stocked hectare in 2019 to £15,962 per stocked hectare in 2020;
- 58% enhance in whole worth of forestry market from £126.5 million in 2019 to £200.18 million in 2020;
- 16,595ha (gross) of forestry traded in 2020 (61 forests);
- Enhance in common measurement of a property offered from 136ha in 2019 to 206ha this yr;
- Scotland offered the biggest share of economic forest market at 69% by worth;
- England reveals welcome enhance in planting with 2,330ha, up from 1,420ha final yr;
- Wales planted 80ha, the bottom annual determine seen in 50 years.
Bruce Richardson, head of funding and property, Tilhill, mentioned:
We’ve seen a really astonishing yr for forestry values. Regardless of the issues with the Covid-19 associated restrictions, the UK forestry market has carried out robustly by way of 2020, producing file leads to scale and unit costs rising by 39% over the previous yr.
“The market in 2020 has been very aggressive. This yr most properties have been offered above information value.
“Essentially the most hanging story this yr has been the extent of curiosity proven in youthful restock websites versus the extra mature forests.
The youthful forests are attracting greater unit costs per ha partly as a result of the 2020 market included some very high-quality youthful forestry in prime areas.
“We imagine these costs present investor confidence in the way forward for the timber market, based mostly on proof that the improved sorts of spruce, a results of a few years of genetic analysis, planted in recent times are performing as forecast with improved yield and kind,” he concluded.
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