Forest market strong in period of uncertainty

摘要

As global economies have been turned upside down, UK forestry has remained a target asset class for investors. Looking back over the past 10 years, we have seen sustained, double digit rises in annual capital values for good quality, well located andproductive forest properties. At the start of this period, the rise in forestry values largely reflected a re-basing of a historically under-valued asset class, but about five years ago it became clear that if these hefty annual rises in capital values were to be sustained, a corresponding rise in timber prices was needed. Along came Brexit, and with a comparatively strong UK economy which remains heavily dependent on timber imports, theimpact of a weak Sterling made timber imports comparatively expensive, helping drive up domestic timber prices. As timber prices rose, the increase in forest property prices was sustained - good news for forest owners. Weak Sterling also made the UK attractive to European investors, drawn by the excellent timber growth rates but no longer put-off by the relative strength of the Pound.