The Forest Market Report 2021

The forestry market has seen a record-breaking year, with average values more than double what they were three years ago and the total value of the forestry investment market reaching a new high, according to the latest UK Forest Market Report.

The annual report, produced by John Clegg & Co and Tilhill, is now in its 23rd year and is regarded as the most comprehensive publicly available record of forestry transactions in the UK.

This year it highlights the sector is attracting unprecedented levels of interest from commercial forestry buyers and financial institutions. Some are experienced forestry investors, but others are new market entrants with multiple objectives – part financial and part related to Environmental, Social and Governance (ESG) considerations or natural capital outcomes.

The report shows that in 2021 a total of £200.40m of forestry properties were traded, making it another record year for the sector. This year there is also a new section on the market for planting land, which shows an additional £53m worth of land suitable for afforestation transacted, plus £26m worth of natural capital land.

Key findings:

• 21% increase in forestry values from just under £16,000 per stocked hectare in 2020 to £19,300 per stocked hectare in 2021. However, the spread in prices paid is wide, with significant geographic and quality variations.
• The total value of the forestry market was £200.40m in 2021 (just over the £200.18m in 2020), with 70 planting land deals also struck worth £53m.
• 10,400ha (gross) of forestry traded in 2021 (67 forests), compared with 12,500ha in 2020
• Decrease in average size of a property sold from 206ha in 2020 to 155ha this year
• Scotland provided largest share of commercial forest market at 76% by value

Download a copy of the full UK Forest Market Report 2021.

If you would like to discuss any aspect of the forestry market, including woodland creation, asset management, valuations or buying and selling existing woodland, then please get in touch with a member of the John Clegg & Co team.