The shift towards biodiversity net gain (BNG) is reshaping how land is valued and used across the UK. For many developers, securing planning permission now centrally involves meeting the new legal obligation to deliver measurable improvements to the natural environment. At the same time, landowners are discovering that creating and selling BNG units can provide fresh income opportunities while supporting wider conservation efforts. One type of BNG unit that landowners might produce are habitats within the ‘grassland’ broad habitat category. The growing demand for BNG units for sale means that grassland habitats in particular are increasingly recognised as a valuable resource for both ecological enhancement and sustainable development and are a habitat type commonly lost as part of a development proposal.
Understanding Grassland BNG Units
Grassland habitats vary widely in their biodiversity value, and this variation is reflected in the number and type of biodiversity net gain (BNG) units they can generate. At the lower end of the scale is modified grassland, which is typically species-poor and considered low value in biodiversity terms. At the other end are species-rich habitats such as lowland meadows, which hold very high biodiversity value and therefore produce more valuable units. Between these extremes lie a range of medium- and high-value grassland types, each contributing differently to biodiversity enhancement and net gain.
Whether through the restoration of existing habitats or the creation of new ones, appropriately managed grassland sites can generate BNG units that play a crucial role in compensating for habitat loss caused by development. Recognising the distinctions between different grassland types is essential to ensure that biodiversity gains are meaningful, measurable, and properly aligned with the habitats affected by a scheme.
The biodiversity metric underpins this process by providing a consistent method for assessing the ecological value of both development sites and off-site habitat banks. On development sites, the metric establishes the baseline ecological value before any works begin and calculates the expected biodiversity value after proposed habitat creation, enhancement, or retention measures. This calculation determines the number of biodiversity units the development will deliver on-site. For off-site habitat banks, the same metric is used to assess the number and type of units that can be generated through habitat creation or restoration on that land, which can then be made available for developers to purchase as part of their biodiversity offsetting strategy.
In both on-site and off-site contexts, a qualified ecologist is responsible for applying the metric accurately and producing the necessary habitat management and monitoring plans. These, alongside a clear biodiversity gain plan, provide assurance to the responsible body and the local planning authority that the required biodiversity net gain will be delivered and maintained for the long term.
Opportunities for Landowners
For a landowner, establishing a biodiversity gain site through habitat creation or restoration offers an alternative income stream. By working with ecologists, land managers, and organisations such as Civity, landowners can create BNG habitat banks that produce units for the private market. Developers who have a BNG requirement but can’t deliver all the units they need on-site can purchase these units.
Entering the BNG market offers landowners a significant financial opportunity. By creating or enhancing habitats that generate biodiversity units, landowners can sell these units to developers who need to meet their biodiversity net gain requirements, providing a reliable long-term income stream. To participate, land must be secured through a conservation covenant or SE106 agreement, ensuring the arrangement is legally binding and delivers the agreed outcomes over time.
Alongside the financial returns, there are wider environmental and social benefits. Restoring and creating new habitats supports biodiversity, improves the quality of the natural environment, and contributes to national nature recovery goals. These improvements also bring long-term value to local communities by enhancing green spaces, supporting wildlife, and increasing the ecological resilience of the surrounding landscape.
Opportunities for Developers
For developers, purchasing off-site biodiversity units is often the most practical way to achieve compliance. Some development sites lack the land and/or ongoing management capabilities required to deliver the necessary uplift in site biodiversity units. In such cases, buying units from an established BNG habitat bank allows developers to demonstrate net gain, secure planning approval, and move forward with their projects without causing an unacceptable net loss of biodiversity.
Developers must ensure that any purchased BNG units meet the standards set by Natural England and are supported by appropriate legal agreements. By sourcing off-site units from a BNG habitat bank with an approved Habitat Management and Monitoring Plan and legal agreement in place, developers can guarantee the biodiversity net gain BNG outcomes expected by planning authorities.
How the Market Works
The BNG services sector is rapidly evolving, with the private market offering a growing number of grassland BNG units (as well as other unit types) for sale. Providers such as Civity register our units and allocate them to specific development projects. This process ensures that every unit purchased delivers a measurable improvement to biodiversity and helps achieve sustainable development.
With rising demand for off-site BNG, both landowners and developers must act strategically. Landowners need to partner with experienced advisors to structure their biodiversity gain sites correctly, while developers must identify trusted suppliers to fulfil their immediate needs and long-term obligations.
Civity’s Role in the BNG Market
At Civity, we bridge the gap between landowners and developers, ensuring the successful delivery of grassland BNG units that meet all legal obligations. Our team supports landowners through the creation and registration of biodiversity gain sites, providing units to developers and BNG units that align with their planning approval requirements. By guiding both sides through the entire process, we make it easier to achieve compliance, protect the environment, and unlock the full potential of the BNG market.
If you are a landowner exploring how to register your land for habitat creation or a developer in need of BNG units for sale to secure planning permission, Civity can provide the expertise and support you need to achieve lasting results.
