We work with landowners, developers, and local authorities to help deliver Biodiversity Net Gain (BNG) that is legally compliant, ecologically sound, and financially viable. One of the most common questions we receive is: what land is suitable for a BNG habitat bank?
In this blog, we explain the key criteria used to assess land for BNG habitat banks, highlight common misconceptions, and explore how land managers can use their own land to support off-site biodiversity gains and sell biodiversity units.
What Land is Suitable for a BNG Habitat Bank? Key Criteria Explained
A BNG habitat bank is a site where land is set aside for long-term habitat creation, restoration, and enhancement to generate biodiversity units. These units can then be sold to developers who need to achieve BNG when their development site cannot deliver enough on-site biodiversity value.
To be eligible, land used for a habitat bank must meet strict BNG requirements under the Environment Act and follow the biodiversity gain hierarchy, which prioritises on site delivery first, followed by off site BNG, and finally the option to buy statutory biodiversity credits.
If you’re unfamiliar with how habitat banks work, what is a BNG Habitat Bank? Blog offers a good starting point.
Key Criteria for Habitat Bank Suitability
Not all land is appropriate for use in a habitat bank – although a lot of land is! Several core criteria determine whether a site can deliver measurable, additional biodiversity gain and be included on the biodiversity gain site register.
1. Low Pre-Development Biodiversity Value
Land with low baseline biodiversity (as measured by the biodiversity metric) offers greater potential uplift through habitat restoration or creation. This is key to generating a significant net gain.
- Intensive arable fields, species-poor grassland, or degraded pasture are often good candidates.
- Land must be assessed using biodiversity metric calculations to establish the viability of these habitats, which may need verification via soil testing, particularly if grassland habitats are to be proposed.
2. Potential for High-Quality Habitat Creation
The site must be ecologically suitable for delivering priority habitats identified in local nature recovery strategies or nature conservation policies. It could be capable of:
- Supporting habitat types with high distinctiveness or condition
- Enabling long-term habitat enhancements and enhancing biodiversity
- Contributing to wider natural capital and nature recovery goals
3. Appropriate Size and Connectivity
Typically, the smaller end of the scale for BNG Habitat Bank projects to work is 10-20ha.
4. Suitable Ownership and Management Structure
Land must be under the control of a willing land manager or habitat bank operator who can commit to:
- Registering the site on the Biodiversity Gain site register
- Entering a legally binding agreement (e.g. SE106 or Conservation Covenant)
- Ensuring ongoing management and compliance for at least 30 years
5. Clear Legal and Planning Status
To be eligible for BNG delivery:
- The site cannot already be delivering mandatory ecological mitigation or be part of statutory protected sites.
- The habitat improvements must be additional—not replacing habitats that are already being lost or offset elsewhere.
- The site must be secured via a legal agreement with a responsible body or Local Planning Authority to lock in biodiversity gain.
What Makes a Site Ineligible?
Certain land types and scenarios are not suitable for BNG habitat banking:
- Land already under planning permission or allocated for development
- Sites with existing, high-quality habitats that cannot be further enhanced
- Land already under a legal obligation to restore or manage for biodiversity (unless clearly providing additional value)
It’s important to avoid double counting or using the same area to meet other regulatory or environmental commitments.
If you’re considering stacking income from multiple schemes, here is our guide on what additionality is in BNG. Explaining what qualifies and what doesn’t.
Using Your Own Land for Off-Site BNG
If you’re a landowner considering how to make your land eligible to provide biodiversity units, there are a few key steps to follow:
- Assess the Baseline
- Use the statutory biodiversity metric to measure your pre-development biodiversity.
- Create a Habitat Bank Operation Plan
- Identify which habitats will be created/enhanced, managed and monitored as detailed within the HMMP.
- Ensure alignment with trading rules and biodiversity gain hierarchy
- Secure Legal Agreements
- Agree to a conservation covenant or SE106 to ensure long-term delivery.
- Register the Site
- Add your land to the National Biodiversity Gain site register.
We support landowners through every stage of this process, from initial assessment to securing a legally compliant agreement. Visit our landowners page for more on how we can help.
Benefits of Habitat Banks for Landowners and Rural Communities
- Generate income by selling BNG units to developers
- Deliver tangible contributions to the natural world and nature recovery
- Improve land value through habitat management and enhance habitats
- Support rural communities through conservation-focused land management
How Habitat Banks Support Developers
For developers—BNG habitat banks offer a streamlined way to:
- Meet mandatory biodiversity net gain targets
- Purchase biodiversity units in line with their biodiversity gain plan
- Offset impacts from development projects where on-site delivery is constrained
If you’re unsure how habitat banks and biodiversity gain sites interact with monitoring, our Habitat Management and Monitoring Plan guide can help clarify long-term expectations.
Role of Local Planning Authorities and Responsible Bodies
Local planning authorities play a crucial role in approving development linked to BNG delivery, ensuring that:
- On-site and offsite proposals meet legal and ecological criteria via SE106 Agreements
- BNG is embedded throughout the planning process
Responsible bodies are designated to oversee the long-term delivery, compliance, and monitoring of habitat bank sites registered via conservation covenant agreements.
Final Thoughts: Choosing the Right Land for a BNG Habitat Bank
Understanding what land is suitable for a BNG habitat bank requires careful consideration of ecological value, planning constraints, and long-term management potential. Not every field or woodland will qualify—but with the right conditions and expert support, many sites can become part of the UK’s growing BNG habitat bank network.
At Civity, we work with landowners across the country to assess land suitability, prepare Habitat Management Plans, and organise the sale of high-integrity biodiversity units for development projects.
For further official guidance, visit Gov. UK’s overview of BNG.
Do you have land that could support Biodiversity Net Gain? Contact our team to explore whether it meets the criteria for becoming a successful habitat bank site.
