FEATURE MATERIAL SUPPLY
New Factors Driving Commercial Forestry Value According to the UK Forest Market Report 2021, the forestry market saw a recordbreaking year, with average values more than double what they were three years ago and the total value of the forestry investment market reaching a new high.
T
he annual report, produced by John Clegg & Co and
Key findings
Tilhill, is now in its 23rd year and is regarded as the most comprehensive publicly available record of forestry transactions in the UK. This year it highlighted
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21% increase in forestry values from just under £16,000 per
that the sector is attracting unprecedented levels of interest
stocked hectare in 2020 to £19,300 per stocked hectare
from commercial forestry buyers and financial institutions. Some
in 2021. However, the spread in prices paid is wide, with
are experienced forestry investors, but others are new market
significant geographic and quality variations
entrants with multiple objectives – part financial and part related
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to environmental, social and governance (ESG) considerations or
The total value of the forestry market was £200.4 million in 2021 (just over the £200.18 million in 2020), with 70
natural capital outcomes.
planting land deals also struck worth £53 million.
The report shows that in 2021 a total of £200.4 million of forestry
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properties were traded, making it another record year for the sector.
10,400ha (gross) of forestry traded in 2021 (67 forests), compared with 12,500ha in 2020.
This year it includes a new section on the market for planting land,
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which shows an additional £53 million worth of land suitable for
Decrease in average size of a property sold from 206ha in 2020 to 155ha this year.
afforestation transacted, plus £26 million worth of natural capital land.
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Peter Chappell, head of forestry investment, Tilhill said: “It is
Scotland provided largest share of commercial forest market at 76% by value.
an exciting time to be in the forestry sector. The positive long-term outlook for timber values has buoyed confidence in how commercial forests can perform as an investment and the wider benefits of trees and woodland to society and the environment are being increasingly recognised. The growth in the value of an average stocked hectare has continued unabated, rising 21% this year. This means over the past three years, values have risen from £9,300 in 2018 to £19,300 in 2021. “The report also highlights how the trend of younger forests achieving the highest unit values has continued into 2021. This shows investor confidence in timber values, and the fact that younger, second-
rotation forests tend to be characterised by high yielding, improved Timber Trader UK Magazine
Winter 2021-2022
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