Another robust year for forestry

Nov. 27, 2019 - PRLog -- The average price of commercial forestry on the market rose 23% over the last year, according to an industry leading report launched today (Wed 27th November) in London.

The 21st edition of the UK Forest Market Report, produced by Tilhill Forestry and John Clegg & Co, outlines a positive outlook for the "robust" market in its annual analysis and commentary on the forestry and woodland sector and highlights its "powerful attraction as an investment asset".

Key Findings:
23% Year-on-Year rise in average forestry values to £11,478 per stocked hectare (ha).
21% increase in the total value of the forestry market.
Commercial forestry transactions worth £126.5m completed in the past year.
14,235 ha (gross) of forestry traded in 2019 (81 forests).
Decrease in the average size of sold forestry property from 196 ha in 2018 to 136 ha.
Average cost £1.56m.
69% of properties sold above their guide price with 14% of properties selling at more than 150% over guide.
Continued strength in the mixed woodlands market.
Scotland held the largest share of forestry market transactions (78% of recorded sales).
Planting targets exceeded in Scotland.
Positive outlook for forestry market.

Peter Whitfield, Business Development Director for Tilhill Forestry, said: "We have seen a continued upward trajectory in average forestry values, which rose by 23% over the past year. However, it must be stressed this is a volatile figure which is in part a reflection of the excellent quality of the forests which came to the market this year. Deviations in the quality of properties sold distort the comparison and, if we were to compare like for like examples, we would probably see something closer to a 10-12% rise. That said, there is clearly a genuinely strong uplift in the market."

Figures show a 21% increase in the total value of the market, which amounted to £126.5m. A total of 69% of properties sold above their guide price with 14% of properties selling at more than 150% over guide. The average size of a sold forestry property decreased to 136 ha (from 196 ha in 2018) and the average cost amounted to £1.56m.

Conclusion
We can expect an unsettled few years ahead both politically and economically. In this environment, we can see the value and security of real assets that continue growing regardless of political uncertainty. This, along with a continued political support for forestry, aligned with a new impetus for woodland creation driven by growing climate change concerns, makes us optimistic about the future.

For more information, please contact:

Suzi Christie, Blueberry PR (on behalf of Tilhill Forestry)
Tel: 01323 449744 / 07590 591140  Email: suzi@blueberry-pr.co.uk