Woodland prices are rising, according to the latest Forest Market Report by Tilhill and Savills.
A very active plantation market is highlighted, with total sales rising by nearly a quarter in 2004, and the average price per hectare for all age classes increasing by 14% to £1,817.
Simon Hart of Tilhill said that for the first time since the report was published, six years ago, the value of mature woods over 30 years old has also increased.
“Higher timber prices, increased interest in property as an asset, and general confidence in the woodland market, have all contributed to the 13% rise in values,” he added.
Richard Stirling-Aird of Savills said that although many of the woods were established with commercial objectives, they were now being bought by individuals looking for amenity, sport and even “development hope” value.
He added: “Remarkably, over 2004 the average price paid per transaction across all sizes was just over the agents’ guide price – the same as last year.”
In 2004 the total value of sales was £24.5m, up from £19.7m in 2003. At 140ha, the average size of plantation sold was slightly up on the previous year, and the average transaction value also increased – up 24% to £260,000.
