The UK commercial forestry market is rebounding after two years of decline, with high-quality plantations attracting strong investor interest and commanding premium prices. A 2024 report by John Clegg & Co indicates that while average plantation values fell by about 10% to £18,900 per stocked hectare, well-located, high-quality forests continue to fetch robust prices. Simon Hart, head of forestry in Scotland at John Clegg & Co, stated: “We continue to see strong prices paid for well-located, quality plantations. Values of over £20,000/ha remain common, with peaks of £30,000/ha still being occasionally achieved.”

In total, 29 forests were sold across Britain in 2024 — up from 20 in 2023

The apparent drop in average values is largely due to a decline in the average yield class of sold forests, which fell from 19.1 in 2023 to 16.2 in 2024. Hart explained: “Lower-yielding crops are inevitably worth less, so this alone accounts for the apparent drop in average values when looking year-on-year.” This shift highlights the market’s preference for higher-yielding plantations.

In 2024, 29 forests were sold across Britain, up from 20 in 2023 but below the five-year average of 44. The total market value reached nearly £94 million, more than doubling the £45 million recorded in 2023, though still below the five-year average of £151 million. Sales prices averaged 107% of guide prices, slightly higher than the previous year. Most transactions occurred in Scotland, consistent with typical market trends.

Looking forward, Hart expressed cautious optimism, noting: “We continue to see strong interest in good properties with a number of sales concluded or under offer in 2025 Q1 and new funds moving into the market. Overall, we see continued steady demand for woodlands and do not anticipate significant changes in values.” However, demand for remote pine-dominated forests with lower growth rates is weakening, compounded by stable timber prices and rising harvesting and haulage costs, which are impacting net returns.

Long-term prospects for the sector remain positive, driven by growing global timber demand and anticipated declines in interest rates, which are expected to encourage investment. While changes to business property relief (BPR) in April 2026 and evolving international trade tariffs are under scrutiny, they have not yet significantly affected UK forestry values.

With several deals already in progress for the first quarter of 2025, John Clegg & Co anticipates a stable year ahead, fueled by demand for well-managed, strategically located plantations. The UK forestry market’s recovery reflects its resilience and attractiveness to investors seeking sustainable assets in a dynamic economic landscape.