NORTH SCOTLAND

Our analysis shows that North Scotland is a lower value area, due to the poorer physical growing conditions, variable tree growth and extended distance to timber markets. However, our 2019 analysis reveals that across the market, North Scotland witnessed the highest rise in average values from £5,630 to £8,180 (45%) per net productive hectare. The rise compares to average annual growth of 7% over the past seven years. This reflects improving timber prices in the region as markets become more competitive (for instance Norbord near Inverness significantly increased production following investment in the facility), and also a distillation of money from the prime market areas as investors become frustrated by the lack of purchasing opportunities. With the exception of Central Scotland (where the number of hectares sold was largely unchanged), North Scotland was the only region to sell more hectares in 2019 than 2018, reporting an increase of 800 hectares.

CENTRAL SCOTLAND

The average value of net productive forest in Central Scotland rose by 31% during the 2019 forest year to £12,760 per hectare. This sharp rise compares to average annual growth of 6% between 2012 and 2018 and was largely a result of some high prices paid in Argyll, which is now considered a mainstream investment area. Although Central Scotland experienced no real change in the number of hectares sold, it had the largest market share across Scotland, England and Wales at 34% with just under 5,000 hectares transacted.

SOUTH SCOTLAND

In the 2019 forest year, average values in South Scotland rose by 38% to £15,170 per net productive hectare. This strong growth follows a slight dip in 2018. Although the number of hectares sold was -17% less than the 2018 forest year, South Scotland’s market share was the second largest of all the regions. In Scotland, the south remains the most competitive area for timber marketing, and forests here benefit from excellent physical conditions leading to fast, even growth.

ENGLAND AND WALES

In line with the previous year’s average, values are boosted by a scarcity of productive woodland for sale (see below). The average price of commercial forestry traded in England and Wales is higher than any Scottish region and since 2013 has cost over £10,000 per productive hectare. Although the 2019 forest year reports a slower rate of value growth in England and Wales (5%) compared to the Scottish regions, average net productive values were above £16,000 per hectare.

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