Forestry tops UK returns in 2006

A 14% increase in timber values in 2006, and rises in the price of agricultural land, made forestry the top investment in Britain last year.

Returns increased by 20.6% last year, outperforming equities, gilts and commercial property for the first time.

Annual returns in Britain over 14 years are 3.4% for forestry, compared to 9.9% for stocks and shares, 7.8% for gilts, and 12.9% for commercial property. Over five years forestry’s 7.8% return beat the 5.1% from gilts, but lagged behind the 8.5% return from stocks and shares, and 15.1% per year for commercial property.