Bainbridge Island, WA (PressExposure) April 11, 2012 -- A new report from MTW Research shows that demand for timber frame housing will increase hugely over the coming four years in the UK. This could prove good news for forestry investors, according to Forestry Research Associates (FRA).
The researchers found that as demand for sustainable, energy efficient building materials increases, sales of timber frame homes will increase by 60 per cent in volume. Sales values will increase even further, growing by 80 per cent from current levels.
FRA, a research and analysis consultancy focusing on forestry investment, claims that those with investments in the timber industry could benefit from this new popularity of timber framed homes. The researchers claim that new regulations, such as the Code for Sustainable Homes is helping to promote timber as one of the lowest carbon forms of construction material.
"The research carried out by MTW Research was very comprehensive," stated FRA's analysis partner, Peter Collins. He added, "Around 80 per cent of the industry was involved in the study and much of the industry seemed extremely positive about what the future holds in store for them." Growing demand is expected to come from the house-building sector, but also from the commercial, leisure and retail sectors, which are all also under pressure to turn to more sustainable building materials.
FRA is an advocate of investment in sustainable forestry projects, such as those run by Greenwood Management in Brazil. More and more people are investing in alternative asset classes such as forestry as the traditional financial markets continue to be volatile places to invest - where people can lose a fortune overnight.
"Investing in forestry and timber, however, is much less risky," added Mr Collins, who went on to say, "If your timber stocks come to maturity at a time when the market is less than strong, you can just hold on a little longer before harvesting and watch your asset continue to grow in the meantime."