UK forestry market stabilises as demand grows in 2026 sector

While prices have dipped, buyer interest has strengthened, with more farmers and landowners turning to woodland as a way to diversify income in response to mounting financial pressures in agriculture.

Data from Savills indicates that total transaction values reached £304.4 million over the year. However, this figure was heavily influenced by a small number of significant deals.

Excluding these sales, the core market was valued at £150 million, closely aligned with the decade-long average and an improvement on the previous two years.

Nicola Buckingham, associate director in Savills’ rural research team, said the record total masked the true picture. “During the 2025 forest year, the total value of sales was at £304.4 million, a record high for the sector. However, this was influenced by a number of large transactions, with one sale accounting for 43% of the overall value traded.”

Despite healthy levels of activity, land values declined. The average price per hectare dropped by 15.5% to roughly £15,500, reflecting both a correction from the highs seen in 2022 and the mix of properties coming onto the market.

Even so, the longer-term trajectory remains positive, with prices still approximately 2.5 times higher than they were in 2016.

Overall, 18,100 hectares of woodland changed hands in 2025, comfortably exceeding the 10-year average of 16,000 hectares and pointing to sustained momentum in the market.

These trends reinforce forestry’s increasing appeal as a diversification strategy, combining long-term financial returns with environmental advantages such as carbon sequestration and biodiversity enhancement.

Regionally, Scotland continued to lead the sector, accounting for 95% of all commercial forestry deals, well above historical norms.

Meanwhile, England and Wales saw more limited activity. About 500 hectares were sold in England, below the usual annual average of 900 hectares, while Wales recorded just 400 hectares of transactions compared with a typical 1000 hectares. Despite lower volumes, some areas still experienced firmer pricing.

James Adamson, head of forestry at Savills, said demand is expected to build further. “The commercial forestry market can expect to see strengthening demand in years to come.”

He noted that although the headline figures suggest strength, the pace of transactions felt relatively muted during the year. Nonetheless, investor interest remains robust.

Mr Adamson said the sector continues to attract capital as a long-term asset, offering: “Timber production, environmental enhancement and carbon as part of a burgeoning green agenda”.

Overall, while values have cooled from recent peaks, the market remains active and interest in forestry continues to deepen.