British wood prices heading up

IS the price of wood heading back up, is the question posed by a recent Times article.

The newspaper reports that those involved in woodland investment have seen the price of timber rise from the doldrums of recent years.

Although you may say, well they would say that, the article does go on to highlight how a turn around in both the UK and world economy is having an impact as well. A real change from the past.

A big determinant of British competitiveness is the exchange rate. Over much of the past decade, the price of European timber has been falling in sterling terms, forcing UK prices lower.

But also the increasing use of wood-burning power stations and recycling efforts may also be having a positive influence.

The development of wood-burning power stations in the UK has been particularly welcome for the timber industry; 21 projects are in the planning stage and three are up and running.

The article also highlights the tax benefits of investing in woodland as many use it to beat inheritance tax and capital gains tax.

But others are doing it to ensure that woodland is managed and can be enjoyed in the future.