Forest Market Review 2025

Mixed fortunes for commercial forestry in 2025

The performance of the commercial forestry market in Great Britain in 2025 was very mixed, with an increasing spread in forest values leading to a softening in the average price paid.

Forestry and woodland specialists John Clegg & Co’s annual Forest Market Review reports that while technically 2025 was a record-breaking year – with over £250 million worth of plantation sales recorded – this figure masks what has become a slower, more variable market.

Simon Hart, Head of Forestry in Scotland, says: “At first glance, the market in 2025 looks to have been incredibly strong. A total of 11,300 stocked or plantable hectares were sold which is more than double the area sold in 2024, with a cumulative selling price of £261m – a new high.

“However, more than half of this was accounted for by three large sales- the Griffin sales (Lots 1 and 2) and the Caledonian and Irish Portfolio, which were so large they mask the underlying trends.

“For example, if the Griffin sales are included then the average selling price was £23,000/stocked hectare, but if they are excluded the average selling price was £16,200/hectare.

Mr Hart says the evidence is clear the plantation market slowed last year with more forests selling within the £10,000 – 20,000 bracket than for some time.

In addition, only 45% of sales were completed within six months of launch and a third took over a year – which are the lowest percentages for 10 years.

Average sale prices were 102% of the guide and 30% sold for less than the guide price.

“Excluded from these figures are also woods that remain for sale or have been quietly withdrawn from the market. Our sense is that a 10% drop in average plantation values is a truer reflection of the market.”

A flat timber market, interest rates being higher than many have been used to, uncertainty over import and export tariffs and the changing inheritance tax rules were all factors.

Timber returns remain well down on the immediate post-COVID peak, but the cost of restocking and maintenance has continued to rise by more than inflation.

“Put these factors together and the economics of productive forestry on poorer sites, distant from markets, start to look challenging and even relatively mature spruce woods can struggle to achieve £10,000/ha. Yet at the same time, woods close to markets are still selling well, with a few mature spruce properties selling at over £40,000/ha.”

Lower plantation prices have also led to lower land prices for afforestation and restocking.

“Planting land is still changing hands but at lower prices and volumes than when the market peaked in 2021/22.”

Looking ahead, Mr Hart says realistic pricing is essential if sellers want a sale in the short term.

“If the price is too high in this current market, then it is hard to persuade potential investors to even inspect the property.”

But with forestry owners often being wealthy individuals with well-balanced investment portfolios they usually have the option of being able to wait for better times.

“Most owners had a good year in 2025 in terms of the stock market, so they can usually afford to ride out a sticky period in the forestry market.

“The forestry investment fundamentals remain in place – an underlying biological growth driver, a largely benign tax regime and strongly rising global demand for timber. But until that translates into improved domestic timber prices, the forestry land and plantation market is likely to remain cautious. Good properties in the right locations are still selling well, but take the same wood to the far north of Scotland and the price will be much lower.”