The UK commercial forestry market recorded more than £250m in plantation sales during 2025, but new analysis suggests headline figures are masking a slower and more selective market.
Forestry and woodland specialist John Clegg & Co’s latest annual Forest Market Review points to a market that remained active in value terms, but softened when measured against prices, sales speed and buyer confidence.
The report shows that 11,300 stocked or plantable hectares were sold during 2025, more than double the area recorded in 2024. Total selling price reached £261m, setting a new high for the market.
However, according to Simon Hart, Head of Forestry in Scotland at John Clegg & Co, the headline figure needs careful reading.
“At first glance, the market in 2025 looks to have been incredibly strong,” he said.
“A total of 11,300 stocked or plantable hectares were sold which is more than double the area sold in 2024, with a cumulative selling price of £261m – a new high.
“However, more than half of this was accounted for by three large sales – the Griffin sales (Lots 1 and 2) and the Caledonian and Irish Portfolio, which were so large they mask the underlying trends.”
Those underlying trends suggest a more cautious plantation market. More forests sold within the £10,000 to £20,000 per hectare bracket than has been seen for some time, while only 45% of sales completed within six months of launch. Around a third of sales took more than a year, the weakest performance on that measure for a decade.
Average sale prices reached 102% of guide, but 30% of transactions were completed below guide price.
“Excluded from these figures are also woods that remain for sale or have been quietly withdrawn from the market,” added Mr Hart. “Our sense is that a 10% drop in average plantation values is a truer reflection of the market.”
John Clegg & Co points to several factors behind the shift, including a flat timber market, higher interest rates, uncertainty around import and export tariffs, and changes to inheritance tax rules. Timber returns remain well below the immediate post-COVID peak, while restocking and maintenance costs have continued rising faster than inflation.
Site quality and location are now playing a sharper role in valuations. Mr Hart said productive forestry on poorer sites, distant from markets, is becoming more challenging economically, with even relatively mature spruce woods struggling to achieve £10,000 per hectare. By contrast, well-located woods close to markets are still attracting strong interest, with some mature spruce properties selling above £40,000 per hectare.
Looking ahead, realistic pricing is expected to remain critical. “If the price is too high in this current market, then it is hard to persuade potential investors to even inspect the property.”
While many forestry owners may have the financial flexibility to wait, John Clegg & Co concludes that the market is likely to remain cautious until improved domestic timber prices feed through into plantation values.
For more info visit www.johnclegg.co.uk
Read more in the latest Timber Trader magazine here
