Amenity woodland is often seen as inferior to fully fledged commercial forest assets, but in today’s socio-political context, woodlands managed for people and the environment are not only highly valued, but also have the potential for resilient, diversified income opportunities.
Analysis by Savills rural research of openly marketed amenity woodland properties of less than 20 hectares and of a guide price of less than £300,000 shows there are significant regional variations in values.
Between 2017 and 2021 the average asking price across the UK for a small block of amenity woodland (under five hectares) was just over £45,000, and £145,000 for woods of between 15 and 20 hectares.
However, the average asking price for a woodland of 15 to 20 hectares in Scotland was just over £90,000 and £200,000 for the same sized block in the east of England.
Chris Spofforth, director Savills rural agency based in the south-east comments, “Since the lockdowns, we have seen an increase in interest for amenity woodland - clients are wanting to buy pockets of woodland as places to escape the city and reconnect with nature.”
What are the key drivers of value?
Local demand (driven by population density) and the frequency of buying opportunities are key metrics determining price, but in reality affordability is the primary driver, irrespective of the size or content of the wood. Other factors include privacy, which is usually a high priority, and road access and basic infrastructure such as water points will influence the value.
Chris adds, “It’s notoriously hard to value amenity woodland, in many cases the final price is very often inflated by personal motivations. Who wouldn’t value the chance to walk, manage and improve a piece of woodland you can call your own.”
Savills research also highlights that the market for amenity woodlands is highly influenced by size. The average asking price across the UK for a small amenity woodland (up to five hectares) was in excess of £27,000 per hectare between 2017 and 2021. Moving up the size scale and the average price falls significantly to below £9,000 per hectare. Perhaps unsurprisingly there is a higher proportion of smaller parcels of woodland for sale across the UK. However, a cautionary note, splitting up larger woodlands to meet this demand can create a barrier to ‘bigger better and more joined up’ environmental management.
Link to Spotlight on amenity woodland - https://www.savills.co.uk/research_articles/229130/320470-0