The UK’s forest and and woodland investment market nearly doubled in value in 2009 and remains buoyant thanks to long-term confidence in timber and the wood energy market.
These are some of the key points in the 2009 Forest Market Report, produced jointly by the UK’s biggest forest management and harvesting business UPM Tillhill and land agents Savills.
The total market rose in the last trading year to £48.2m, with the Forestry Commission accounting for 37% of sales. The area sold increased to 14,600ha, more than twice the 2008 total.
Savills associate director Anna Thomas said that the market had benefited from an investment flight from equities during the credit crunch, but was also underpinned by longer-term expectations for timber demand, with construction forecast to use more than in the past when it comes out of recession.
UPM Tillhill woodland investment adviser Crispin Golding said that the market was also strengthened by faith in the future of wood energy.
“This really is an explosive market,” said Mr Golding. “This year an additional 750,000 tonnes of biomass energy capacity came on stream in Scotland alone and that’s equivalent to 9% of the UK softwood harvest.”
