Prices in the timber market have stabilised following major increases over the previous half year, according to the Winter 2018 Timber Price Database from property consultants Bidwells.
The report looks at the standing conifer timber prices achieved in the six months to December 2018.
Returns from the sale of 776,970 cubic metres of private sector coniferous timber grown in Scotland, Northern England and a small amount in Wales with a total standing value to the grower of £29.8 million suggest that the meteoric rise in timber prices experienced in the half year between October 2017 and March 2018 has levelled off.
Data submitted from 121 coniferous transactions suggests that prices have risen slightly between April and September 2018, though it is more accurate to say that values have been maintained at their previously high levels.
Continued weakness of sterling remains a major factor in UK grown timber prices, but high global demand and tightness of supply suggests no reason why the big picture will change in the foreseeable future, says Bidwells.
Raymond Henderson, forestry partner at Bidwells said: “It is always difficult to predict the future, given the influence which global demand and exchange rates have on domestic timber values, but the overall macro-economic situation of increasing demand and tightening supplies suggests no reason to suspect a weakening of prices over the short term.
“We do of course live in strange times where informed projections are apt to be overtaken by events and the ongoing uncertainties created by the unfolding drama of the UK’s withdrawal from the EU – or possibly not as the case may be – make crystal ball gazing murkier and less certain than ever. That said, the fundamentals of timber sales should not alter too drastically regardless of our membership of the European club.”
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To view the full insights and research, visit – https://www.bidwells.co.uk/insights-and-research/timber-price-database-winter-2018/