A guide to setting up an urban habitat bank

This guide sets out a step-by-step process for establishing an urban habitat bank, developed through the National Trust Nature Towns and Cities programme. It is designed to support local authorities in delivering biodiversity net gain (BNG) through the creation and restoration of habitats that generate biodiversity units for sale to developers.

The guide explains how habitat banking works in practice, including identifying demand for biodiversity units, assessing suitable sites, and quantifying ecological value using the BNG metric. It also outlines how habitat supply can be planned through ecological assessment, strategic site selection and alignment with wider priorities such as Local Nature Recovery Strategies and green infrastructure plans. Alongside ecological considerations, it highlights the importance of cross-directorate working and early stakeholder engagement.

A significant focus of the guide is the financial and governance structure required to deliver a viable habitat bank. It covers cost modelling for habitat creation and long-term maintenance, approaches to revenue generation through biodiversity unit sales, and options for delivery models including in-house structures and special purpose vehicles. The final stages set out legal processes, investment engagement and operational steps required to launch and run a habitat bank over the long term.

About National Trust 

The National Trust is a UK conservation charity working to protect and care for historic places and green spaces. Through programmes such as Nature Towns and Cities, it supports partners to improve access to nature and create greener, more connected places where people can enjoy the benefits of the natural environment.