Buying up woodlands has become an increasingly astute move for investors. The UK woodland sector is booming and the value of commercial holdings has surged up to 40% in the past year.
The value of some areas has doubled in the last four years. The average prices last year were 4,250 per hectare and sales were up 80% in 2006, according to the Forestry Market audit by UPM Tilhill and Savills property consultants.
After the credit crunch in the banking world, more people are eager to buy up space of ancient woodlands and the demand is outstripping the supply. The investors range from millionaires to ambitious entrepreneurs with 100,000-250,000 to spend. The fad could be the result of the publics growing interest in environmental business.
The forestry report says demand is high with the highest prices within easy access to London and the South East. After scale of prices for locations like these range from 8000-12000 per hectare. The cheaper allotments, located usually in more remote areas, cost between 2000-5000 per hectare.
Many are jumping on the bandwagon, believing that owning forestry is fashionable and a good way to reduce the carbon footprint. The timber industry in the UK produces 8.5 million tonnes of timber per year, making 340 million, which is just 15%-20% of the countries needs. This number is predicted to rise in the next 20 years by 50%. While it may be a good financial investment you dont need to buy an expensive piece of forestry to reduce your carbon footprint.
Related posts
Posted under Articles, Environmental News
This post was written by Christine Pinella on April 17, 2008