An increase in environmental awareness has strengthened investors’ interest in an expanding forestry market.
The average price of commercial forestry on the market in the UK rose 23% in the year to September 2019, supported by timber prices, government schemes and investor interest.
Buccleuch Estates will sell 3,600ha of forestry and agricultural land on its Borders Estate in Dumfries and Galloway on the open market.
Forestry investors are continuing their search for low-value, unproductive farmland following another strong year for the sector in 2017.
Scotland’s biggest private landowner, the Duke of Buccleuch, has called in a government commissioner to intervene in a row between his estate managers and agricultural tenants.
A strong outlook for the UK timber market is behind the slow supply of commercial forestry in 2017.
Owners are choosing to retain rather than sell as a weak pound makes imports expensive and domestic housebuilding initiatives continue to hold up timber values.
Investors have seen strong returns for two decades, and despite some predictions that the top of the market may be close, few are choosing to cash in their chips.
A buoyant forestry market in Scotland and north-east England is creating strong demand for marginal farmland for woodland creation.
Premiums above a parcel’s agricultural value are being paid if forestry investors are involved, with upland sheep units often viewed as strong propositions.
Opt in here