As land battles intensify, British forestry value rises 23%
As land battles intensify, British forestry value rises 23%.
With the support of timber prices, government plans and investor interest, the average price of commercial forestry in the UK market rose by 23% as of September 2019. This is based on the British Forest Market Report, produced by Till Hill Forestry and John Clegg, and released on Wednesday (November 27). Due to the increase in the quality and quantity of real estate transactions, the total value of the forestry market increased by 21%, reaching 22.3 million national standards.
See also: 6 things we know about the farmland market in 2019: Peter Whitfield, business development director of Till Hill Forest: "It must be emphasized that this is an unstable number To some extent, it reflects the excellent quality of the forest that entered the market this year. "The deviation in the quality of properties sold has distorted the comparison. If we compare similar examples, we are likely to see growth closer to 10% -12%. "Nevertheless, the market is clearly showing a really strong rise."
Rising prices: Last year, 126.5 million pounds of commercial forestry transactions were completed, the second highest number in the report's 22-year history, with a total of 14,235 hectares and 81 forests. The average cost price is 1.56 million pounds, of which 69% of property sales are higher than its guide price and 14% of properties are more than 150% higher than the guide.
Visit us to know how to use agricultural consulting center
The value of forestry has increased by almost 90% since 2016 and remains high in England, followed by Wales and Scotland the cheapest.
Scotland has the largest share of sales (78%), and the remaining share is evenly distributed to England (a quiet year in 2018) and Wales (a busy year to 2018). In Scotland, 5 properties over £ 5 million and 15 properties under £ 500,000 were sold.
Consider carbon: Timber prices, interest rates and the value of agricultural land are largely price drivers. John Clegg & Co director Fanning Welstead (Finning Welstead) said: "With the fall in timber prices this year, people may think that the value of forest real estate should also be emulated This has not happened, and we believe that this is a direct reflection of the trend in renewable resources and a direct reflection on the move towards a low-carbon economy. "Ownership provides opportunities for alternative land use; for example, renewable energy and commercial forestry crops are a Popular mixed crops. In addition, carbon taxes may be levied during development, so it is possible to obtain annual income for carbon sequestration. "
Scotland surpassed its 10,000 hectare plantation target to 11,210 hectares, while England and Wales were generally below their targets.