Rising timber prices help lift UK forestry
Published 28/06/2011 | 05:00
British farmland delivered a 9pc return last year, compared with 8.4pc for 2009, according to the Investment Property Databank (IPD) UK Rural Property Index.
A statement from the IPD said the inherent stability of the rural market, which did not see returns dip into negative figures during the downturn, meant a less substantial recovery last year.
Meanwhile, increasing timber prices drove forestry returns last year to their highest levels since 2007, at 20pc, according to the IPD Forestry Index. Timber prices increased by 38.5pc over the 12 months to March this year. Forestry returns are linked to these, though timber prices are a more volatile asset. Over an 18-year period, forestry has returned 6.3pc/yr on average.