The UK forestry industry has proved resilient in 2024, despite facing economic challenges. According to The UK Forest Market Report 2024, produced by BSW Group’s Tilhill Forestry, and Goldcrest Land & Forestry Group, the market remains strong, driven by demand for high-quality assets, stable timber prices, wider natural capital projects and a positive medium-term outlook for wood being used as a substitute for high carbon materials.
In 2024, GBP 95.4 million ($120.8 million) of forestry was listed for sale in the UK, a 55% decrease on the previous year. The market numbered 44 properties with a total of 5,400 stocked hectares and an average valuation of GBP 18,600 ($23, 544) per stocked hectare. Scotland continued to dominate with a 79% market share.
This year saw a drop in the pricing of agreed deals. However, an unusually high proportion of northern Scotland properties, which are typically lower in value due to the distance from core timber markets, distorted the market. When adjusted for outliers and northward skews, like-for-like valuations were close to flat, reflecting a healthy calibration after many years of steep increases. Strong demand for assets remained, despite challenging headwinds.
Investor sentiment was cautious but steady. With greater political certainty after the budget, the report forecasted plenty of opportunities in 2025, with several high-value properties expected to come to the market.
