Feature: UK Forest Market Report 2025 | 53


they are custodians. The biggest common denominator is the land.”


He posed the question “is land the most tangible asset class?”, adding that different parties will value the land at different prices. “Will the tree planter pay more than the sheep farmer? Neither will outbid the housebuilder. It is the purchaser, parting with their hard-earned cash who is the most accurate valuer. What is it worth to he or she?”


He noted that bare land values have come back from “the dizzy heights” of spring 2022 and have revalued, reflecting the “static-ish” nature of current interest and inflation rates. Investors are seeking 5-6%-plus to commit to forestry, which is often seen as a long-term investment, he added “However, land can produce unexpected upsides,” he said. “Thirty years ago, forest owners did not predict the potential for wind turbines – a most lucrative annual income producing alternative to timber, if the planners and the grid connection oblige. Radio masts, hydro schemes, carbon credits, development and other change of use have all produced fiscal benefit not necessarily originally anticipated – but do remember you have to own the land to be in the game.” Turning his attention to what has actually been paid for forest properties last year, Mr Lambert said that there had been a reasonable market activity for properties comprising young, commercial timber – crops in the two- to eight-years-old bracket.


“Undoubtedly the design of forest plantings has improved substantially in the last decade and we’re now seeing some exemplary examples being sold both on and off the open market,” said Mr Lambert. “Sites with immaculate design, 100% stocking, grade four land, gentle slopes, fully established high yield class crops intensively managed with attention to detail such as inter row mowing. These have achieved prices of over £20,000 per stocked hectare for three-year-old crops.


“In some cases the land and trees are accompanied with pending issuance units or PIUs, that precursor to the woodland carbon units colloquially known as carbon credits. Where these are connected to well-designed mixed woodlands they may be described as high integrity. This creates additional value and we have examples of validated PIUs being worth over £30 a ton while still attached to the land and trees. “Conversely, poorer quality young forests on marginal ground producing low yield classes have seen prices as low as £7,000/ha.” Mr Lambert added that mid-rotation crops had produced a large range of values depending on location and quality. “In 2025 purchasers have been selective and on occasions, in my mind, overly cautious,” he continued. “We have seen bouts of ‘sitting on hands syndrome’ where investors have been watching national and global economy and political uncertainties. Institutions’ deployable capital has also varied from time to time and the spread of this bracket is probably in the region of £10,000- 28,000/ha – a wide range.” At the mature end of the market there had been strong demand from institutional buyers keen to generate annual income in their business models. However, current timber prices have not encouraged harvesting and some forest owners have delayed felling unless essential.


Sale prices in this bracket have ranged from a low of £27,000 to a high of £46,000 per stocked hectare. “Variation results, of course, from volume per hectare and quality,” said Mr Lambert. “To ensure maximum sale pricing it has been imperative that sellers establish volumes and furnish potential purchasers with the detail to allow healthy, informed competition. “Overall in 2025 the word I use to summarise the market is ‘inconsistent’. Comparable, similar properties have sold in some cases at considerably different prices –


or indeed, some properties are sticking and not selling, where other properties have sold at really quite strong prices. I repeat myself – the market really has been cautious and selective.”


Looking to the future, Mr Lambert drew delegates attention to the new land reform bill, recently approved by the Scottish Parliament.


“This will affect the largest of farms, forests and estates greater than 1,000ha,” he said. “Management plans will need to be drawn up and when the owner wishes to sell, they must inform the Scottish ministers, who in turn will work with the local community and establish if they want to purchase all or parts of the proposed sales subjects. Lotting will be used as appropriate.


“My prediction is that this will slow and, in some cases, frustrate the sale process, potentially resulting in reduced sales receipts. There is also the question around how communities will pay for these parcels of land and whether, as in the past, a Scottish land fund will be available – and if so, surely we have to ask if this is good use of taxpayers’ money.


“Secondly, April 2026 sees the reduction in business property relief, resulting in 20% Inheritance Tax (IHT) being paid on inherited forestry assets after an initial exempt £1m. This still means forestry is an attractive business as most assets will attract 40% IHT on death. My prediction is the change will have little effect on the forestry market, with timber prices, inflation and economic outlook having a much larger influence.” ■


The full UK Forest Market Report, which also includes articles by Harry Stevens, forestry director at BSW Group, reflecting on the standing timber market; David McCulloch, head of CarbonStore, looking at the woodland carbon market; and Rebecca Wilson, a fifth- generation farmer, can be found at: www.tilhill.com/ukfmr


COLLABORATION ON LAND USE


“The UK is not a large country, yet our land is being asked to do more and more,” said Rebecca Wilson in the report. “We need it for food production, trees, housing, renewable energy, biodiversity, and carbon storage,” added Ms Wilson, a fifth-generation farmer named in the Sunday Times Young Power List 2025. She stressed the need for clear communication and respect for the deep-rooted emotional connection farmers


have to the landscape. “Farming and forestry both have a role to play in tackling climate change, delivering biodiversity, and supporting


rural economies. The danger lies in treating them as competing land uses, when in reality there is an opportunity for them to complement each other. “Both sectors are long-term stewards of land, tied in with climate, nature, and rural economies. If they work against each other, opportunities will be lost. If they work together, the benefits could be substantial. “The future of land use in the UK will be defined not by choosing between trees and food, but by finding ways to integrate them.” ■


www.ttjonline.com | Spring 2026 | TTJ


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