There are a number of fundamentals which underpin the UK forestry market for investors:
- The UK has excellent growing conditions for commercial species of conifers.
- There is a large domestic market for timber products, which is not satisfied internally and relies on imports worth £6.4bn per annum.
- Current timber availability projections show significant shortfalls in supply appearing from about 2030.
- The UK has a well-developed, dynamic timber processing industry.
- The UK forestry industry benefits from favourable tax treatment, including on income tax, capital gains tax and inheritance tax.
- Overall the capital value of land has performed well historically.