Woodland values have risen strongly over the last year as demand continues to outstrip supply. Market analysis indicates that values have increased by about 20% over the last year, mirroring rising timber prices.
Woodlands have performed well for over a decade, with the IPD Forestry Index showing annualised returns from woodland ownership of 17% over the last 10 years. This is a fantastic return and beats practically all other asset classes.
With interest rates remaining low, the continued positive tax treatment of forestry and strong demand for UK-grown timber, the outlook remains positive.
Owners of woodland may seek a valuation of their asset for a variety of reasons including tax planning, transfer of ownership, and portfolio analysis. No two woodlands are the same and in a dynamic market with big price movements, it is easy to arrive at unrealistic figures. Woodland valuation is a job for a specialist. Simon Hart of EGGER Forestry is a RICS Registered Valuer, specialising in woodlands, so if you would like a woodland valuation please contact Simon.