Scottish rural management and property consultancy Galbraith says too many investors are missing out on healthy returns from forestry.
Philippa Cliff, head of forestry, Galbraith, said: “Commercial forestry has been the top performing asset in the UK in the past 15 years, with the best woodlands generating returns in excess of 10% a year.
“Despite this impressive performance, there are actually very few investors active in the market.
“Woodland seems to be considered as an investment option only by a few people in the know.
“Timber is currently the fourth biggest UK import, but a weaker pound has pushed up import costs, fuelling an immediate rise in timber prices and increased demand for home-grown timber.
She added: “In addition to the very attractive returns, the tax system is geared towards helping those who invest in woodland. No income tax or capital gains tax is payable on the sale of timber and commercial forests are entitled to 100% business property relief from inheritance tax after two years of ownership.”