Forestry values up 15% in 2022

Industrial forestry values have escalated by no less than 15% previously yr, in response to a brand new trade report produced by Tilhill.

The UK Forest Market Report 2022 has estimated that the market is price effectively over £200 million.

Rising demand for timber property pushed by net-zero ambitions contributed to rising costs in a market characterised by fewer, smaller, however higher-value gross sales in 2022.

In the meantime, the land out there for pure capital initiatives, together with native afforestation, peatland restoration and rewilding, additionally trebled over the previous yr, led by England.

Better consciousness of the advantages of broader pure capital elevated curiosity in alternatives providing wetland, islands and different variety, the report stated.

The give attention to nature-based options past timber revealed much more land appropriate for these initiatives, rising to £80.7 million (from £26.4 million in 2021) based mostly on the info monitored.

England accounted for the most important market share with £32.4 million of listings for two,500ha of whole land space, adopted by Wales (£28.9 million for two,100ha) and Scotland (£19. million throughout 2,300ha).

These listings averaged, per gross hectare, £13,200 in England, £13,600 in Wales and £8,500 in Scotland.

Within the report, Xander Mahony, head of forestry funding at Tilhill, stated:

“Industrial forestry values proceed to be pushed by rising demand from institutional buyers going through constrained provide.

“This yr specifically has seen provide on the backside finish of the historic vary.”

He stated yield class was the largest indicator of per hectare values, demonstrating a market that was keen to pay a premium for one of the best property.

The combined woodland market – pushed by amenity and desirability over economics – grew by 81% in worth from £10.7 million to £19.4 million and in dimension by 760ac, with rising demand outstripping provide.

The report discovered planting land transactions rose by nearly 1 / 4 (23%) from £53.1 million to £65.3 million, with a median price of £16,475/plantable hectare, up 50% on final yr’s £11,000.

Scotland led the best way with 85% of the worth of plantable land offered north of the border in addition to a 73% enhance in common value to £17,200/hectare.

Based on Tilhill, just a few distinctive outliers skewed the numbers increased in comparison with earlier years, however the trajectory was nonetheless upwards.

The whole land planted within the UK rose by 4% (13,850ha) with broadleaves overtaking conifers for the primary time since 2016.

76% of all new planting – and 93% of whole conifer planting – passed off in Scotland though at 10,480ha it was nonetheless under annual planting targets of 12,000ha.