Biomass powers UK woodland values
The value of forestry land in the UK has more than doubled since 2003, and land values remain strong, partly due to the growth of biomass-fuelled power stations.
The 2008/09 Forest Market Report published by UK woodland management company UPM Tilhill and estate agent Savills found that wood-fired plants at Shotton, Teesside and Lockerbie, alongside new projects underway such as Tullis Russell in Fife and Drax in North Yorkshire, are beginning to generate a real and sustainable source of income for woodland owners.
According to the report, investors who have owned woodlands during the past five years have enjoyed capital growth of more than 100%, with the average price reaching £3,596 per hectare (€4,100).
These figures come despite a downturn in construction and connected declined in timber prices as many sawmills reduced capacity or shut down. Demand for pulpwood exports to Scandinavia and Finland remains strong.
‘In a year which has seen oil prices reach record levels, the economy slip towards recession and the nationalisation of three major banks, forest owners are really bucking the trend,’ Simon Hart, woodland investment adviser for UPM Tilhill, says.
The report covered properties larger than 25 hectares (approximately 62 acres).
The 2008/09 Forest Market Report published by UK woodland management company UPM Tilhill and estate agent Savills found that wood-fired plants at Shotton, Teesside and Lockerbie, alongside new projects underway such as Tullis Russell in Fife and Drax in North Yorkshire, are beginning to generate a real and sustainable source of income for woodland owners.
According to the report, investors who have owned woodlands during the past five years have enjoyed capital growth of more than 100%, with the average price reaching £3,596 per hectare (€4,100).
These figures come despite a downturn in construction and connected declined in timber prices as many sawmills reduced capacity or shut down. Demand for pulpwood exports to Scandinavia and Finland remains strong.
‘In a year which has seen oil prices reach record levels, the economy slip towards recession and the nationalisation of three major banks, forest owners are really bucking the trend,’ Simon Hart, woodland investment adviser for UPM Tilhill, says.
The report covered properties larger than 25 hectares (approximately 62 acres).
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