BNG's First Six Months: Key Insights for Landowners and Developers

August marked the six-month milestone since Biodiversity Net Gain (BNG) became mandatory for most planning applications under the Town and Country Planning Act. Drawing from Natural England's recent reflections and our own expertise with our BNG Finder service, we'll explore how this first half year has gone.

The Fundamental Shift in Development Approach

You may already know by now, but BNG has ushered in a new era for the way that nature is treated through planning and development, requiring a minimum 0% biodiversity net gain for projects. This has significantly impacted how developers select
sites and approach designs, with a growing emphasis on benefiting both people and nature.

Key Takeaway for Developers: Consider BNG requirements early in your site selection and design process. This proactive approach can lead to more cost-effective and innovative solutions that meet high integrity habitat creation principles.

Key Takeaway for Landowners: BNG still presents a unique opportunity to monetise your land and improve a farm’s resilience while contributing to nature recovery. Consider how your property could serve as a biodiversity offset site.

The Emergence of a New Market

The introduction of statutory BNG has catalysed the beginnings of a vibrant new market. We've seen the rise of habitat banks, BNG brokers, software tools, and online marketplaces such as BNG Finder - all aimed at connecting developers with BNG solutions.

Through BNG Finder, we’ve been getting stuck in and kept productive conversations moving forward; sharing what we know as well as our experiences. With the wide scope of this new market, we’d really like to see more talk out there about BNG success stories throughout the rest of 2024, as well as more resources that can help developers move forward with minimal
barriers to entry.

Market Snapshot: Nearly 500 BNG sites are currently being advertised across digital marketplaces, with most ready or nearly ready for registration on the biodiversity gain site register.

Opportunity Alert: For landowners, this burgeoning market represents a chance to diversify income streams. For developers, it offers a widely growing range of options for meeting BNG requirements.

Navigating the BNG Register

The BNG Register, managed by Natural England, is ultimately the place for recording off-site gains and preventing double-counting of biodiversity units. As of August 2024, 11 gain sites have been listed on the register, securing over 250 hectares and 7.5 km of planned habitat intervention.

Registration Tip: Natural England aims to process all applications within 6 weeks, with some completed in as little as 2 weeks. Ensure your application meets all requirements to avoid delays.

The Role of Statutory Biodiversity Credits

While on-site and off-site options are preferred, statutory biodiversity credits have served as a last resort for developers unable to meet BNG requirements through other means.

Important Note: These credits are only available after planning permission has been granted and other options exhausted. Local Planning Authorities play a crucial role in determining when developers can purchase these credits.

Looking Ahead: Challenges and Opportunities

While the introduction of BNG may have been slow in terms of the rate of planning applications, offsite agreements and getting the market going, the government remains committed to improving the planning system while supporting nature recovery.

Our perspective?: We anticipate a period of adjustment throughout the rest of 2024 as developers and landowners adapt to the new system. However, we also foresee significant opportunities for those who can navigate this new landscape effectively. As this happens, we’ll start to see the market develop and deals become more regular. Ideally, we’ll see more collaboration to ensure better quality BNG that relates to locally defined nature recovery objectives and starting to address wider outcomes.

Conclusion

The first six months of mandatory BNG have demonstrated both the challenges and potential of this groundbreaking approach to development. At BNG Finder, we're committed to helping landowners and developers navigate this new terrain, facilitating matches that benefit both parties while contributing to the UK's biodiversity goals.

Whether you're a developer seeking BNG solutions or a landowner looking to capitalise on this new market, BNG Finder is here to help.

Contact us today to explore how we can support your BNG journey.