The companies’ latest Forest Market Report says prices grew 50% during the past three years and by 22% in the year to September 2005 alone.
The overall market size rose by 50% to £36.4m in the past year, with average prices reaching £2,209/ha, while average transaction values were up 35% to £351,000.
Simon Hart, UPM Tilhill’s woodland investment adviser, described 2005 as an “exceptional” year, while Savills’ Richard Stirling-Aird said the dramatic rise in values had taken most agents by surprise.
“There is clearly more optimism about future timber prices, than say, three years ago” |
Richard Stirling-Aird, Savills |
Mr Stirling-Aird said: “There is clearly more optimism about future timber prices, than say, three years ago.”
The report, which covers commercial forests larger than 25ha, is available on www.upm-tilhill.com