Oxfordshire BNG & Habitat Banks Explained

Why BNG exists – and why it matters locally

Since 12 February 2024, most developments in England must deliver a minimum 10% Biodiversity Net Gain (BNG) under the Environment Act 2021. Oxfordshire’s Local Planning Authorities (LPAs) have fully embedded this into their validation requirements.

Where on-site biodiversity improvements aren’t achievable, off-site delivery – including via local habitat banks – is permitted and often necessary.

With farming families navigating policy uncertainty, volatile markets, and increasing concern about inheritance-tax treatment, it’s important to stress that:

• BNG is optional, not a requirement for landowners.
• Habitat creation can sit alongside productive farming, not instead of it.
• HMRC and DEFRA guidance indicate that environmental land management can still qualify as part of a farming business for tax and succession purposes when actively managed.
• Local Plans across Oxfordshire now emphasise multifunctional land use, recognising the need for food production, nature recovery, water management and access to work together.

How habitat banks work (Oxfordshire)

The Oxfordshire Local Nature Partnership (OLNP) maintains a live directory of habitat banks that have secured or are close to securing the necessary legal agreements (Section 106 or Conservation Covenant). Crucially, OLNP publishes:

• full baseline ecological surveys
• the statutory biodiversity metric spreadsheets
• 30-year management and monitoring plans
• reporting schedules and stewardship frameworks

This transparency is delivered through the NatureMark standard, and it is increasingly mirrored in the emerging Local Plans across all districts.

Current Oxfordshire habitat banks include:

• Duxford (BBOWT) – Vale of White Horse
• Towersey (TOE) – South Oxfordshire
• Cornwell Estate (Environment Bank) – West Oxfordshire

This county-level transparency reduces risk for buyers and provides a clear practical model for landowners considering entering the BNG market.

Local Plan alignment

The emerging Local Plans for West Oxfordshire, Cherwell, South & Vale, and Oxford City now:

• prioritise BNG units delivered in areas identified in the Oxfordshire Nature Recovery Network (NRN)
• support off-site BNG where it strengthens strategic habitat corridors
• emphasise long-term governance and transparent documentation (aligning closely with OLNP’s NatureMark standard)
• encourage the use of locally strategic habitat banks before out-of-county units
• recognise that urban constraints, especially in Oxford City, will drive demand for off-site units in neighbouring districts

This creates a stable planning environment for off-site BNG across Oxfordshire.

Pricing & demand

Market pricing

Prices vary by habitat type, distinctiveness, and local availability. Independent quarterly trackers show:

• relative stabilisation compared with early 2024
• strong demand for high-distinctiveness grassland and watercourse units
• slower movement in low-distinctiveness habitats where supply is higher

Local demand, ecological constraints, and Local Plan policies matter far more than online averages.

Statutory credits

DEFRA’s statutory biodiversity credits remain intentionally high, ensuring developers prioritise the private market. These are a last-resort mechanism, not a benchmark for pricing.

Local demand evidence

Strategic projects – including A34 corridor improvements and large-scale development around Oxford – have already procured significant biodiversity units. With Oxford City’s tight site constraints, steady regional demand for off-site units is expected to continue.

Landowner entry checklist

A practical sequence for evaluating a potential habitat bank:

1. Site screening

Assess soils, hydrology, flood risk, existing habitats, and – critically – alignment with the Oxfordshire Nature Recovery Network (NRN), which all emerging Local Plans now use to guide BNG priorities.

2. Baseline survey & statutory metric

A professional baseline and a properly completed statutory biodiversity metric are essential. OLNP-published examples provide a reliable standard.

3. Legal mechanism

Choose between:

• a Section 106 Agreement with the Local Planning Authority, or
• a Conservation Covenant with an approved responsible body.

4. 30-year management & monitoring plan

This includes costed actions, triggers, monitoring schedules, and reporting. OLNP’s Habitat Management Plans provide clear models.

5. Sales route

Options include:

• direct to developers
• local brokers (e.g., TOE / BBOWT partnerships)
• national operators (e.g., Environment Bank)

Succession & tax reminder

When land enters long-term habitat management, Agricultural Property Relief and tax treatment depend on how the project integrates with the wider farming business. Government guidance recognises that environmental land management can remain part of active land-based business activity.

A simple Oxfordshire “green stack” (illustrative only)

This is not prescriptive, but shows how some landowners organise diversified land uses while keeping farming at the centre.

Base layer: Sustainable Farming Incentive & capital items

Select actions and grants that support soil health, water management, carbon measurement, and good agronomy. Many Oxfordshire farms use SFI to improve resilience and data rather than restructure operations.

Nature layer: Habitat creation or woodland

Where areas are naturally suited – or less optimal for production – landowners may explore:

• BNG habitat banks, or
• woodland creation (linking into future or emerging carbon markets; Oxfordshire currently has relatively few Woodland Carbon Code schemes live)

Additional Income Layer: Energy and Access

Where grid capacity and planning policy allow:

• BESS (battery storage) leases can offer indexed income.
• Eco-tourism and small-scale nature-based accommodation can provide seasonal income where local evidence shows unmet demand.

Taken together, BNG, habitat banking and the wider “green stack” do not replace farming – they simply offer additional options at a time of uncertainty and transition. Oxfordshire now has a clearer policy direction, strong transparency standards through OLNP, and growing demand driven by Local Plan requirements. For landowners, the opportunity is to understand these tools, explore what fits their land and business, and make informed decisions on their own timeline. With sound advice and the right structure, environmental management can sit comfortably alongside productive agriculture while supporting long-term resilience for farming families.