The discount formula
Multiplier = 1 / (1 + 0.035)^years; the Defra discount rate is 3.5%. Five-year target condition: 0.842; ten-year: 0.709; twenty-year: 0.503; thirty-year: 0.355.[S1]
Why woodland is punished heavily
Lowland mixed deciduous woodland creation has a 30-year target condition under JP039 condition cards; the temporal multiplier discounts the unit yield to 0.355 of the headline score. Combined with the difficulty multiplier (high difficulty = 0.333), a woodland creation can deliver under 12% of its raw distinctiveness-times-condition score in the metric.
How habitat banks beat the multiplier
Habitat banks that have already established the habitat by the time the unit is sold do not carry the temporal discount; the buyer pays for delivered units, not promised future condition. This is the structural reason habitat bank prices clear above on-site delivery cost for the same habitat type.
Discount table (selected years)
- 1 year: 0.966
- 5 years: 0.842
- 10 years: 0.709
- 15 years: 0.597
- 20 years: 0.503
- 25 years: 0.423
- 30 years: 0.355
- 32+ years: 0.330