A report from MTW research has suggested that timber frame houses could increase hugely over the next four years in the UK.
According to the research, demand for sustainable, energy efficient building materials is set to increase while sales of timber frame homes will also rise by 60 per cent in volume.
Sales values could grow by as much as 80 per cent from current levels.
The news could act as a boost for forestry investors across Europe, according to research consultancy FRA.
The FRA's Peter Collins said: "The research carried out by MTW Research was very comprehensive.
"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."
Researchers in the study said that new regulations, like the Code for Sustainable Homes, are helping promote timber as one of the lowest carbon forms of construction material.
KMS Baltics is a partnership of independent companies providing forestry investment management in Estonia, Latvia, the UK and Romania.
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