The forestry sector has witnessed many phases over the past 75 years from its importance as a major national natural resource, through a period of extensive new planting driven by tax mitigation, followed by a more recent focus on the conservation and biodiversity aspects of woodland.

Since the early 2000s, commercial timber forests have held a great attraction for many as investment assets and forestry is now increasingly being purchased as part of a diversified portfolio.

Multiple benefits

Forestry offers multiple benefits, from access and conservation through to the genuine enjoyment of ownership. However from an investment point of view, the sector is primarily about timber production and the demand from processors for raw materials. As the economy continues to recover and the construction sector grows, the future of this commodity looks very promising indeed.

In practical terms the volume of available forestry in GB is limited and, therefore, the likelihood is that a relatively small transactional market will continue to support and enhance capital values over the medium to longer term.

Coupled with the effects of market size, Great Britain has a world class wood processing sector that requires long term continuity of wood supply and there are already concerns in the industry over the future availability of timber.

Based on simple supply and demand economics it is difficult to forecast anything but positive future investment performance for the sector.