According to The UK Forest Market Report 2024, £95.4 million worth of forestry was listed for sale in the UK in 2024, which constitutes a 55% decrease on the previous year’s figures.
The report was composed by Building Sustainable Worlds (BSW) Group’s Tilhill Forestry, and Goldcrest Land & Forestry Group, providing a comprehensive overview of the industry, detailing key financial trends, regional market insights, and emerging investment opportunities.
Head of Forestry Investment at Tilhill Forestry, Xander Mahony, commented:
“This year’s report shows a resilient yet evolving UK forestry sector, where, despite investor caution, there is strong demand for quality assets.
“Stable timber prices, recovering interest in natural capital projects, and the rise of biodiversity regulations are driving growth.”
44 forestry properties numbering a total 5,400 stocked hectares, 79% of which were located in Scotland, the report found.
The report also demonstrated a reduction in the average sale price agreed for forestry at £18,600/ha (18% less than the year previous).
However, this figure is purportedly distorted by the disproportionately high volume of northern Scottish properties – which are typically lower in value due to the distance from core timber markets – considered.
Forestry
The report discovered a drop in the supply of commercial forestry available for sale across the board.
In Scotland, the volume of land available for sale dropped by 40% to 1,600ha, as availability of land suitable for commercial forestry continued to tighten despite sustained demand.
Pricing for land has, however, stabilised at around £10,000/gross ha.
Land marketed in England increased 92%to 1,600ha, at an average £14,500/gross ha, which is 13% less than 2023’s value.
In Wales, planting land also increased by 92%, to 1,300ha, with the average price per gross hectare valued at £16,800, which is up 26% up from last year.
The report acknowledges that while Sitka spruce remains the most popular species at market, more specie diversity as well as improved silviculture is required to ensure industry longevity, as the sector faces increasing environmental challenges.
“Interest base rates seem quite settled around the 5% mark for now but if forecasts for lower base rates become a reality, forestry could be increasingly attractive,” the report said.
With greater political certainty after the budget, the report also forecasted plenty of opportunities in 2025, with several high-value properties expected to come to the market.
The documents also reported that projects with ecological benefits, such as biodiversity and water quality improvements, achieved two to three times higher prices for carbon credits than standard rates, highlighting the demand for sustainable land investments.
