Peterborough property consultancy Carter Jonas has recently been instructed to sell 12.65 acres of woodland at a guide price of £65,000, and with the value of some woodland areas doubling in four years, the commercial appeal of managed forestry land is an attractive investment opportunity in the current property market, says the firm.

Iain Nott, of the rural division of Carter Jonas in Peterborough, said: "With every man, woman and child in the UK consuming one tonne of wood a year and yet we still have to import 82 per cent of our timber requirements, the investment potential of owning managed woodland or forestry land is now an open secret.

"Owning woodland is always going to appeal to a niche market, but we've seen a marked interest in this land sector since we sold just under 70 acres of woodland locally in Kimbolton – with an asking price in excess of £5,000 per acre – at the turn of the year."

Interest in purchasing woodland is coming from institutional and private investors alike, with smaller mixed woodlands usually bought for sporting or amenity purposes but larger, coniferous forests purchased for commercial production of timber.

The UK taxation system provides various incentives to encourage investment in woodland or forestry.

Most benefits are where woodland is managed on a commercial basis – income from timber sales is not subject to Corporation or Income Tax.

Other financial benefits from owning woodland or forestry interests include exemption from Inheritance Tax (IHT) providing it has been owned for at least two or more years, qualifying at that point for Business Property Relief at 100 per cent.

Even woodland owned privately can be registered for VAT, with owners reclaiming VAT on related expenditure.

There are numerous grants available to help offset the cost of establishing, managing, regenerating or improving woodland.