Biodiversity Net Gain: What Landowners Need to Know About the New Legal Landscape

Tim Hobern June 3, 2025

Understanding Biodiversity Net Gain Biodiversity Net Gain (BNG) is now a legal requirement across England, transforming how development and land use are approached. For landowners, especially those in rural and peri-urban areas, the BNG framework opens new opportunities and responsibilities. The core principle is simple: any property development must leave biodiversity in a measurably better state than it was before. This is calculated using a statutory biodiversity metric that assesses the pre-development biodiversity value and the proposed post-development enhancements. As part of the Environment Act, mandatory biodiversity net gain applies to most major developments. Local planning authorities require a biodiversity gain plan, which details how projects will achieve at least a 10% net gain in biodiversity. The biodiversity baseline is crucial, determined by measuring the existing habitat and ecological value of the development site before any work begins. The Role of Landowners in the New Legal Landscape Landowners now play a pivotal role in helping developers meet BNG requirements. This often involves offering land for off-site biodiversity units where on-site gains cannot be fully achieved. Land that provides suitable habitat creation and management can be registered as a biodiversity gain site on the National Biodiversity Gain Site register. This is where landowners can directly contribute to sustainable development practices while establishing long-term revenue streams. Providing biodiversity units through habitat banks or individual agreements allows landowners to sell units to developers in need of off-site gains. These units are calculated using standardised biodiversity metrics, ensuring consistency in how biodiversity value is assessed across different sites. This helps developers comply with the mitigation hierarchy while ensuring that real ecological value is delivered. Off-Site Biodiversity Units and Credits Off-site biodiversity is a key aspect of the BNG strategy, particularly for projects with limited space or ecological capacity on site. In such cases, developers must seek off-site biodiversity gains to meet their net gain obligations. Landowners offering off-site BNG options must enter into legal agreements, such as conservation covenants with a responsible body. These ensure long-term habitat management and protection. In circumstances where neither on-site nor off-site gains are feasible and no private marketplace BNG options are available, statutory biodiversity credits may be purchased by developers from Natural England. However, this is intended as a last resort in the biodiversity gain hierarchy. Off-site habitat creation led by private landowners remains a preferred option because it often delivers more targeted and locally beneficial outcomes. Legal Framework and Key Considerations The legal framework underpinning BNG includes several key components that landowners should be aware of. The Environment Act, biodiversity gain site register, and statutory biodiversity metric provide the foundation. Any biodiversity enhancements offered as part of a gain plan must be secured by a legal agreement (e.g. Conservation Covenant) that demonstrates a long-term commitment to habitat enhancements and maintenance. A responsible body, such as a local authority or conservation organisation, oversees compliance with conservation covenants. For landowners, this means a clear and enforceable obligation to manage and maintain the habitat to the agreed standard. These measures provide developers and planning authorities with the assurance they need to approve projects with confidence. Developers purchasing biodiversity units must provide full details of the purchase agreement in a Biodiversity Gain Plan. Local planning authorities will scrutinise all biodiversity gain plans during the planning permission process. This includes evaluating whether the unit provider has satisfied all the necessary legal requirements and due diligence checks to operate as such. Opportunities for Landowners and Land Managers For landowners and land managers, BNG can offer a valuable and sustainable income stream. Habitat banks and direct provision of biodiversity units can become a central part of a land management strategy. By considering BNG habitats on their land, landowners can market their sites to developers undertaking major developments, including nationally significant infrastructure projects. This allows landowners to secure lucrative and guaranteed long-term income on their land; this income is well in excess of usual yield-based incomes and completely independent of the impacts of variables like weather that usually add uncertainty to yield-based income streams. Engaging with BNG on your land also aligns with broader goals of enhancing habitats and improving ecological services. Off-site habitat creation not only meets the requirements of biodiversity net gain but also contributes to improved soil health, water retention, and climate resilience. These benefits enhance the long-term health of the land while supporting the natural environment. Investing in suitable habitat creation is a tangible way to support wildlife habitats and protect the ecological value of rural and semi-rural areas. Whether restoring hedgerows, rewilding wetland corridors, or reinstating grassland, landowners can tailor their biodiversity gain strategies to local environmental needs and conditions. Navigating the Planning System and Gaining Approval To participate effectively in the BNG framework, landowners must understand how to work within the planning system and/or with a responsible body. Local authorities and responsible bodies are looking for clarity, accountability, and long-term ecological viability in any proposed off-site biodiversity unit. Civity guides landowners and land managers through this process from start to finish. Civity are experts at producing site-specific and robust Habitat Management and Monitoring Plans (HMMP). An effective HMMP is vital to clearly demonstrate how the site will deliver net gain through habitat management. It must reference the biodiversity baseline, specify habitat types, and detail long-term management and monitoring plans. This document is essential to achieving registration on the BNG register and ensuring the responsible delivery of biodiversity gain. The integration of BNG into the planning process means that all stakeholders—developers, landowners, local authorities, and conservation bodies—must collaborate more closely. By aligning the goals of development with nature conservation, the system aims to create more resilient and biodiverse landscapes. Conclusion: The Future of Land Use and Biodiversity Net Gain The introduction of mandatory biodiversity net gain is reshaping the way land is managed, developed, and protected in England. Landowners are no longer on the periphery of the planning system but are now essential partners in delivering ecological improvements. The new legal landscape offers not only regulatory challenges but also exciting opportunities to enhance biodiversity, support sustainable development practices, and create lasting environmental and economic value. By providing biodiversity units, engaging in suitable habitat creation, and managing land for ecological value, landowners are helping to meet the goals set out in the Environment Act and the wider environmental agenda. As the system matures, the biodiversity gain site register, statutory biodiversity credits, and conservation covenants will continue to evolve, offering new mechanisms for landowners to contribute to and benefit from the biodiversity net gain system. For landowners committed to sustainable and responsible land management, this is a pivotal moment. Civity is a specialist biodiversity consultancy helping developers and landowners navigate Biodiversity Net Gain requirements with expert guidance and strategic support. With careful planning, expert advice, and a commitment to ecological value, BNG can become a central part of your land management strategy and a legacy for the natural environment.

BNG Credits Explained: What Developers Need to Know About Achieving 10% Net Gain

Tim Hobern May 29, 2025

As mandatory Biodiversity Net Gain (BNG) is in planning law across England, developers face increasing pressure to understand and comply with its core components. One of the most crucial—and often misunderstood—aspects is how to meet the required 10% net gain in biodiversity. This blog demystifies the role of BNG credits, off-site solutions, BNG units and the full spectrum of options available to achieve compliance. This is your definitive guide to “BNG Credits Explained: What Developers Need to Know About Achieving 10% Net Gain“, covering the tools, terminology, legal routes, and best practices that developers must understand to deliver biodiversity gains both on site and off site. The Goal: Achieve 10% Biodiversity Net Gain Under the Environment Act, all eligible development projects must demonstrate a minimum 10% uplift in biodiversity value compared to the pre-development biodiversity baseline. This uplift can be achieved through on-site habitat creation and off-site biodiversity gains either via purchase of BNG units or delivery of habitat off-site, or—when no other options exist—statutory biodiversity credits. This requirement applies to: Major developments (from February 2024) Small sites (from April 2024) Nationally Significant Infrastructure Projects (expected implementation from November 2025) What Are BNG Credits? BNG credits refer to statutory biodiversity credits offered by the UK government. These are a last-resort mechanism developers can purchase when they cannot secure sufficient biodiversity units through on-site or off-site measures. But BNG credits are just one part of a broader solution that also includes: Site biodiversity gains (created within the red line boundary) Off-site habitat creation/enhancement to deliver units (secured on other land) Biodiversity units purchased from a registered biodiversity gain site (listed on Natural England’s Biodiversity Gain Sites Register) Understanding Biodiversity Units and Metrics The basis for any BNG calculation is the statutory biodiversity metric, which uses habitat type, size, condition, and location to assess the biodiversity value of a site. The latest statutory biodiversity metric tool calculates how many biodiversity units a site starts with and how many it delivers after development. Using the standardised biodiversity metric, developers can: Measure existing habitat and any habitat lost Assess the impact of the proposed development on existing biodiversity Quantify planned habitat creation or enhance habitat interventions Determine any shortfall between gains and the mandatory 10% The Biodiversity Gain Hierarchy Meeting BNG obligations must follow the biodiversity gain hierarchy, a structured process that prioritises sustainable and ecologically beneficial outcomes: Avoid biodiversity loss where possible Minimise unavoidable losses Restore biodiversity on site Secure off-site biodiversity gains Buy statutory biodiversity credits (only as a last resort) Following this hierarchy is not optional. Local Planning Authorities (LPAS) expect to see evidence that developers have pursued significant on-site gains and suitable off-site units before purchasing statutory credits. On-Site vs. Off-Site Gains Achieving BNG On Site On-site solutions are often preferred, especially for developments with adequate space for suitable habitat creation or biodiversity enhancements. Benefits include: Direct control over habitat management Alignment with the site’s design and post-development landscape Stronger connection with local communities and the site’s biodiversity However, on-site gains are not always viable, especially where: Development density is high High-scoring habitats are impacted The red line boundary limits the available space Securing Off-Site Gains When biodiversity cannot be fully addressed on site, developers may: Enhance biodiversity on your own land outside the red line Purchase off-site biodiversity units from land managers, brokers, registered habitat banks, or BNG sites listed on the official register or purchase Statutory Biodiversity Credits from the government (as a last resort). To be valid, these off-site gains must: Be registered on the Biodiversity Gain Sites Register Be secured via a legal agreement (such as a conservation covenant or Section 106) Deliver gains calculated using the statutory biodiversity metric formula. You will need to discuss with a provider to check when their site will be registered and ensure this timeline aligns with when you require the units. When to Buy Statutory Biodiversity Credits Buying statutory biodiversity credits is a viable option only when: You can’t secure or manage gains on your own land On-site options have been exhausted per the biodiversity gain hierarchy There are no suitable off-site biodiversity gains available Natural England is selling statutory credits on behalf of the Department for Environment, Food and Rural Affairs (DEFRA).  Funds from the sale of statutory credits will be invested in habitat creation or enhancement. That said, credits: More expensive than market-based biodiversity units Do not generate site-specific ecological value as they are not necessarily to be delivered close to the development site Considered less favourable by LPAs Legal Requirements for BNG Credits and Off-Site Units Whether you’re securing off-site units or purchasing BNG credits, the arrangements must be legally binding and fully documented. This includes: A clear biodiversity gain plan Confirmation that the site or credits are registered Alignment with the mandatory biodiversity net gain standards The Role of Local Planning Authorities Local authorities play a critical role in verifying BNG compliance. They will: Review your planning permission application for BNG completeness Evaluate your biodiversity gain site or off-site BNG source Check that your use of statutory credits follows the rules Early engagement with the relevant planning authority helps streamline the process and avoids costly delays. How to Demonstrate BNG in Practice To support your application, your BNG documentation should include: A baseline biodiversity assessment using the statutory biodiversity metric tool Details of proposed habitat creation or enhancements Identification of any habitat lost Explanation of on-site and off-site delivery options Confirmation of any BNG units purchased or credits used All figures must be grounded in measuring biodiversity using standardised tools. Choosing the Right Off-Site Provider Not all off-site providers are created equal. Choose a partner who can: Offer legally compliant, registered biodiversity gain sites . If not yet registered, ensure they can provide a timeline for when full unit sales will be available Provide clear information on how many biodiversity units are available Align their sites with the biodiversity metric and habitat types needed for your offset (i.e. your trading requirements are met) Deliver habitat creation projects with robust long-term land management Key Considerations When Buying BNG Credits Credits typically come at a premium cost compared to equivalent off-site units You need to demonstrate you’ve thoroughly explored all alternative options first Local Planning Authorities and Natural England require robust justification for pursuing the credit purchase route While credits support broad habitat creation at a landscape scale, they may not directly benefit or connect with the biodiversity specific to your development area FAQS: BNG Credits and Units How many biodiversity units do I need? This depends on your pre-development biodiversity value and the calculated loss vs. gain. The statutory biodiversity metric provides exact figures. If buying BNG units, the number of units you need to buy will depend on the location of your development in relation to the location of the habitat bank. For every 1 biodiversity unit you require, you will need to buy 2 biodiversity credits! Can I split gains between on-site and off-site? Yes. Many developers use a combined on-site/off-site approach to balance feasibility and compliance. Are statutory credits always accepted? Only if you’ve met the conditions of the biodiversity gain hierarchy can you show there are no practical alternatives. Final Thoughts Delivering 10% biodiversity net gain is not just a planning hurdle—it’s an opportunity to make development projects more resilient, responsible, and nature-positive. Understanding when and how to use BNG credits and when to pursue off-site biodiversity units is essential for both legal compliance and ecological credibility. At Civity, our role is to review the metric and provide the right types and numbers of units. Need help assessing your site or sourcing BNG units? Contact the Civity team or explore our landbank for reliable, register-ready off-site biodiversity gains.

Understanding Statutory Biodiversity Metrics: Tools and Resources Explained

Tim Hobern May 28, 2025

Understanding how to measure biodiversity accurately is fundamental to achieving compliance with the Biodiversity Net Gain (BNG) requirements set out under the Environment Act. At the centre of this process is the statutory biodiversity metric—a tool that helps assess the biodiversity value of a development site, evaluate potential biodiversity loss, and calculate the biodiversity gain required to meet the legal threshold. In this guide to “Understanding Statutory Biodiversity Metrics: Tools and Resources Explained,” we demystify the tools, terminology, and processes involved in BNG measurement—and highlight where developers, landowners, and planners can find the support they need. What Is the Statutory Biodiversity Metric? The statutory biodiversity metric is the government-approved method for calculating changes in biodiversity caused by a development. It is a requirement for all planning applications subject to BNG and is managed by DEFRA. The metric assesses both pre- and post-development habitat conditions based on: Habitat type (e.g., grassland, woodland, wetland) Habitat distinctiveness Habitat condition Size (in hectares or kilometres for linear habitats) Strategic significance (e.g., local biodiversity importance) Each component feeds into a metric calculation tool, producing results in biodiversity units—the standard currency for net gain. Why Biodiversity Metrics Matter The biodiversity net gain metric is more than just a calculation—it’s the bridge between policy and practical outcomes. Using the statutory metric ensures that: Habitat losses are properly accounted for by equivalent or better gains Biodiversity enhancements are measurable and trackable over time Local planning authorities (LPAs) can fairly assess the value of development sites BNG targets are consistent across all development projects The Key Tools Available A developer may own additional land (off-site) which can be used to deliver the biodiversity units upon. This land will need to be managed and monitored for 30 years. The landowner/developer will be responsible for the delivery of these units. 1. Statutory Biodiversity Metric Tool This is the core tool for all major developments. It calculates biodiversity units for: Area habitats (e.g., meadows, arable fields, woodland, scrub, etc.) Linear habitats (e.g., hedgerows, treelines) River units (rivers and streams) 2. Small Sites Metric Tailored for small sites, i.e., not applications which qualify as major development or are discounted from the use of this metric (e.g. priority habitats, protected species or protected sites on the site). A small site/non-major development is defined as residential development where the number of dwellings is between 1 and 9 on a site of an area 1 hectare or less, or if the number of dwellings is unknown, the site area is less than 0.5 hectares. Or Commercial development where floor space created is less than 1,000 squares metres or total site area is less than 1 hectare. 3. Habitat Assessment On all sites where the Statutory Biodiversity Metric needs to be used, habitats will need to be assessed using UKHab Classification. Surveyors use this classification system to identify and classify the habitats on site. This translates to the ‘habitat type’ in the metric. The relevant condition assessment sheet will need to be used to determine how good/poor this example of a habitat type is. For example, it is degraded,species-poor, or riddled with invasive or undesirable species. These resources support the accurate evaluation of a habitat’s distinctiveness and condition, which are essential for determining the overall biodiversity value. Rivers, if impacted, will require their own bespoke River Condition Assessment, which will need to be undertaken by an RCA-accredited surveyor. How the Biodiversity Metric Calculation Tool Works The biodiversity metric calculation tool uses a habitat-based approach to evaluate biodiversity net gain (BNG). It then generates the number of biodiversity units lost and gained, accounting for time delays in habitat maturation and the difficulty of certain enhancements. To pass BNG requirements, the biodiversity gain must exceed the net loss by at least 10%. Data Collection and Assessment Accurate data collection is critical to the effective use of the biodiversity metric tool. This typically involves: An assessment of the habitats on site and the condition (e.g. UKHabs survey and condition assessment) Soil sampling may be relevant to guide habitat proposals GIS mapping to account for the areas of habitats retained, lost and enhanced This information will then be assimilated into the Statutory Biodiversity Metric A qualified ecologist should complete or validate the inputs to ensure the statutory biodiversity metric calculation is robust and acceptable to the relevant planning authority. If a Small Sites Metric can be used, it can be undertaken by a ‘competent person’. Legal Requirements and the Planning Process The BNG requirement is now a legal requirement under the Environment Act and affects all eligible planning applications in England. Developers must submit a biodiversity statement to say if the BNG requirement applies to their project. If so, upon receipt of permission and a requirement to discharge the BNG condition, a biodiversity gain plan will need to be submitted. This will need to be accompanied by all other relevant documents, e.g., the completed metric, habitat management, and monitoring plan. The biodiversity gain plan must demonstrate a measurable net gain using the appropriate metric. LPAs must verify the outcome and ensure it aligns with statutory guidelines. On-Site, Off-Site, and Last Resort Options If net gain cannot be delivered on site, developers can: Secure gains on other land under their control Work with an off-site provider to purchase units As a last resort, buy statutory credits from the UK Government The biodiversity metric helps evaluate all options consistently and transparently. Civity’s Role in Biodiversity Metric Support At Civity, we help clients: Understand the metric trading rules and apply metric trading to ensure we provide you with the right types and numbers of units Review your biodiversity gain plan Work with LPAs and your consultant ecologist One of our key roles is to supply off-site units for developers who cannot meet the net gain on site. Key Considerations for Developers and Land Managers Use the correct metric version for your site size Engage with ecologists and local authorities early in the planning process Base your inputs on verified ecological surveys Remember that enhancing biodiversity involves long-term land management Keep accurate records to comply with post-development monitoring Looking Ahead The UK Government has committed to embedding BNG in the planning system, and the statutory metric is a critical part of that process. As pressure grows to respond and reverse biodiversity decline, using the metric correctly can: Accurately account for the habitats on site Help restore natural habitats Deliver better outcomes for local biodiversity Support resilient, nature-positive development across England Final Thoughts The statutory biodiversity metric is a powerful, evidence-based tool that translates ecological knowledge into practical planning outcomes. Understanding how to use it—and where to find guidance—puts developers and landowners in a stronger position to succeed in the evolving world of biodiversity net gain (BNG). The responsibility of undertaking this assessment is often the role of a consultant ecologist, but it’s great to get ahead of the game and understand how it works! At Civity, we’re here to help you navigate the tools, avoid the pitfalls, and build the ecological and planning confidence needed to deliver measurable biodiversity enhancements. Contact the Civity team for expert help with the biodiversity metric calculation tool, preparing a BNG plan, or sourcing biodiversity units. Learn more or contact us directly for tailored guidance.

Biodiversity Net Gain: What Small Developments Need to Know Now

Tim Hobern May 28, 2025

Biodiversity Net Gain (BNG) is in force for most major development projects in England, and the rules apply to small development sites too. Whether you’re building one to nine dwellings or converting commercial space, understanding BNG is no longer optional.This post offers a detailed breakdown of “Biodiversity Net Gain: What Small Developments Need to Know Now,” focusing on practical compliance, off-site solutions, and the key ecological concepts behind the policy. What Does Biodiversity Net Gain Mean? Biodiversity Net Gain (BNG) is a planning policy requirement under the Environment Act 2021(the requirement was implemented on February 12, 2024, for most major developments and April 2nd 2024, for most small developments), which ensures development projects leave the natural environment in a measurably better state than before. At its core, BNG involves: Measuring biodiversity on a development site using a statutory biodiversity metric. Calculating how much habitat will be lost or degraded. Designing ways to restore biodiversity on site or, if that’s not possible, via the purchase of biodiversity units or purchasing statutory biodiversity credits. Delivering a minimum of 10% biodiversity gain compared to the baseline habitat value. BNG applies to nearly all planning applications in England, with exemptions of note for permitted developments and householder applications. What’s Different for Small Sites? This can be utilised for small sites if; the site is not considered to be a major development AND it doesn’t contain priority habitats, protected sites, or European protected species. The process is expected to be faster and more proportionate, but still rigorous. Local planning authorities (LPAs) will expect BNG information at planning application stage—including a biodiversity gain plan before final consent. How to Achieve Biodiversity Net Gain To achieve BNG, developers must first understand what habitats are present within the red line boundary of the site. This usually involves a UK Habitat Classification assessment by a qualified ecologist. The small sites metric doesn’t always have to be completed by an ecologist- it can be completed instead by a ‘competent person’. This person needs to be able to decipher the habitats on site and understand how to manage/create/enhance the proposed habitats. Step 1: Identify Existing Habitat If using the statutory biodiversity metric: Ecologists will assess the habitats present on site, as well as their size and condition. If using the small sites metric: An ecologist or a competent person will assess the habitats present on the site and their size. This establishes the baseline biodiversity value, expressed in biodiversity units using the relevant biodiversity metric. Step 2: Apply the Biodiversity Gain Hierarchy This hierarchy helps determine how biodiversity impacts are addressed: Avoid habitat loss wherever possible. Minimise impacts on existing habitats. Restore biodiversity on site through habitat creation or enhancement. Offset unavoidable losses through off-site biodiversity units As a last resort, purchase statutory biodiversity credits. Off-Site Biodiversity Gains: Off-site land A developer may own additional land (off-site) which can be used to deliver the biodiversity units upon. This land will need to be managed and monitored for 30 years. The landowner/developer will be responsible for the delivery of these units. Off-Site Biodiversity Gains: BNG Units Off-site solutions involve securing biodiversity units from: A landowner offering habitat creation projects or habitat restoration. A BNG landbank like Civity’s, where developers can purchase off-site biodiversity units tailored to their needs. Aggregators or brokers with access to off-site units. These off-site gains must be registered on the Natural England Biodiversity Gain Site Register and legally secured via a Section 106 agreement or a conservation covenant. Statutory Biodiversity Credits As a last resort, developers can buy statutory biodiversity credits from the government. These are designed to provide a fallback when no suitable off-site gains are available. However, this route is: Onerous – 2 credits need to be purchased for every 1 unit required Considered less preferable under the biodiversity gain hierarchy. Intended to be used only when all other options are exhausted. Why the Metric Matters The biodiversity metric is the tool that underpins the entire BNG process. It converts habitat type, distinctiveness, size, and condition into area habitat units. This allows LPAs to verify that the required biodiversity gains are delivered. For small developments, the small sites metric simplifies some of the inputs while retaining scientific rigour. It’s essential to use the correct metric version depending on project scale and the habitats and species on site. Legal and Planning Considerations This includes submitting a BNG statement early in the planning process and, before final approval, a full biodiversity gain plan. The Role of Local Planning Authorities LPAs will: Assess the biodiversity value of your development site. Check compliance with the BNG regulations. Ensure off-site BNG is legally secured and appropriately located. Working with your LPA early and transparently can smooth the planning process. Securing BNG Legally BNG must be guaranteed for at least 30 years, whether achieved on site, through off-site solutions, or via credits. Gains secured within your development boundary, or within blue line land (but associated directly with the development), may need to be secured via a SE106 Agreement. Habitat bank providers can legally secure their sites via a SE106 agreement or via a Conservation Covenant. This ensures habitat creation or enhancement is monitored, maintained, and delivered long-term—a key concern for local authorities and communities. Civity’s Role in Supporting Small Developers At Civity, we specialise in helping small development projects navigate the complexity of biodiversity net gain legislation. Whether you need: Help reviewing the biodiversity metric or the small sites metric. Advice on your biodiversity gain plan. Access to reliable off-site biodiversity units. Guidance on working with your local planning authority. …we’re here to support ethical, practical, and timely delivery of BNG outcomes. Our BNG landbank connects all developers to habitat creation sites across England. We work closely with landowners, ecologists, and LPAs to ensure all off-site gains are robust, register-compliant, and tailored to your project’s needs. Key Takeaways for Small Site Developers BNG is already mandatory for small sites- you need to be prepared! Assess your biodiversity value early and understand the habitats present. Use either the small sites metric or the statutory biodiversity metric for small sites (check if you can use it) or the statutory biodiversity metric. Where needed, explore off-site BNG options well in advance. Consider the cost, location, and permanence of all biodiversity units. Avoid relying on statutory biodiversity credits unless necessary. Looking Ahead Biodiversity Net Gain is here to stay, and for small developers, it’s an opportunity, not just a challenge. With early planning, the right ecological partners, and smart use of off-site solutions, you can deliver meaningful biodiversity outcomes and unlock planning consent with confidence. At Civity, we believe small developments can make a big difference for UK species, local communities, and the natural environment—one site at a time. For more support on biodiversity net gain: what small developments need to know now, or to discuss your site and options for off site biodiversity units, contact the Civity team today.

What land is suitable for a BNG habitat bank? key criteria explained

Tim Hobern April 14, 2025

We work with landowners, developers, and local authorities to help deliver Biodiversity Net Gain (BNG) that is legally compliant, ecologically sound, and financially viable. One of the most common questions we receive is: what land is suitable for a BNG habitat bank? In this blog, we explain the key criteria used to assess land for BNG habitat banks, highlight common misconceptions, and explore how land managers can use their own land to support off-site biodiversity gains and sell biodiversity units. What Land is Suitable for a BNG Habitat Bank? Key Criteria Explained A BNG habitat bank is a site where land is set aside for long-term habitat creation, restoration, and enhancement to generate biodiversity units. These units can then be sold to developers who need to achieve BNG when their development site cannot deliver enough on-site biodiversity value. To be eligible, land used for a habitat bank must meet strict BNG requirements under the Environment Act and follow the biodiversity gain hierarchy, which prioritises on site delivery first, followed by off site BNG, and finally the option to buy statutory biodiversity credits. If you’re unfamiliar with how habitat banks work, what is a BNG Habitat Bank? Blog offers a good starting point. Key Criteria for Habitat Bank Suitability Not all land is appropriate for use in a habitat bank – although a lot of land is! Several core criteria determine whether a site can deliver measurable, additional biodiversity gain and be included on the biodiversity gain site register. 1. Low Pre-Development Biodiversity Value Land with low baseline biodiversity (as measured by the biodiversity metric) offers greater potential uplift through habitat restoration or creation. This is key to generating a significant net gain. Intensive arable fields, species-poor grassland, or degraded pasture are often good candidates. Land must be assessed using biodiversity metric calculations to establish the viability of these habitats, which may need verification via soil testing, particularly if grassland habitats are to be proposed. 2. Potential for High-Quality Habitat Creation The site must be ecologically suitable for delivering priority habitats identified in local nature recovery strategies or nature conservation policies. It could be capable of: Supporting habitat types with high distinctiveness or condition Enabling long-term habitat enhancements and enhancing biodiversity Contributing to wider natural capital and nature recovery goals 3. Appropriate Size and Connectivity Typically, the smaller end of the scale for BNG Habitat Bank projects to work is 10-20ha. 4. Suitable Ownership and Management Structure Land must be under the control of a willing land manager or habitat bank operator who can commit to: Registering the site on the Biodiversity Gain site register Entering a legally binding agreement (e.g. SE106 or Conservation Covenant) Ensuring ongoing management and compliance for at least 30 years 5. Clear Legal and Planning Status To be eligible for BNG delivery: The site cannot already be delivering mandatory ecological mitigation or be part of statutory protected sites. The habitat improvements must be additional—not replacing habitats that are already being lost or offset elsewhere. The site must be secured via a legal agreement with a responsible body or Local Planning Authority to lock in biodiversity gain. What Makes a Site Ineligible? Certain land types and scenarios are not suitable for BNG habitat banking: Land already under planning permission or allocated for development Sites with existing, high-quality habitats that cannot be further enhanced Land already under a legal obligation to restore or manage for biodiversity (unless clearly providing additional value) It’s important to avoid double counting or using the same area to meet other regulatory or environmental commitments. If you’re considering stacking income from multiple schemes, here is our guide on what additionality is in BNG. Explaining what qualifies and what doesn’t. Using Your Own Land for Off-Site BNG If you’re a landowner considering how to make your land eligible to provide biodiversity units, there are a few key steps to follow: Assess the Baseline Use the statutory biodiversity metric to measure your pre-development biodiversity. Create a Habitat Bank Operation Plan Identify which habitats will be created/enhanced, managed and monitored as detailed within the HMMP. Ensure alignment with trading rules and biodiversity gain hierarchy Secure Legal Agreements Agree to a conservation covenant or SE106 to ensure long-term delivery. Register the Site Add your land to the National Biodiversity Gain site register. We support landowners through every stage of this process, from initial assessment to securing a legally compliant agreement. Visit our landowners page for more on how we can help. Benefits of Habitat Banks for Landowners and Rural Communities Generate income by selling BNG units to developers Deliver tangible contributions to the natural world and nature recovery Improve land value through habitat management and enhance habitats Support rural communities through conservation-focused land management How Habitat Banks Support Developers For developers—BNG habitat banks offer a streamlined way to: Meet mandatory biodiversity net gain targets Purchase biodiversity units in line with their biodiversity gain plan Offset impacts from development projects where on-site delivery is constrained If you’re unsure how habitat banks and biodiversity gain sites interact with monitoring, our Habitat Management and Monitoring Plan guide can help clarify long-term expectations. Role of Local Planning Authorities and Responsible Bodies Local planning authorities play a crucial role in approving development linked to BNG delivery, ensuring that: On-site and offsite proposals meet legal and ecological criteria via SE106 Agreements BNG is embedded throughout the planning process Responsible bodies are designated to oversee the long-term delivery, compliance, and monitoring of habitat bank sites registered via conservation covenant agreements. Final Thoughts: Choosing the Right Land for a BNG Habitat Bank Understanding what land is suitable for a BNG habitat bank requires careful consideration of ecological value, planning constraints, and long-term management potential. Not every field or woodland will qualify—but with the right conditions and expert support, many sites can become part of the UK’s growing BNG habitat bank network. At Civity, we work with landowners across the country to assess land suitability, prepare Habitat Management Plans, and organise the sale of high-integrity biodiversity units for development projects. For further official guidance, visit Gov. UK’s overview of BNG. Do you have land that could support Biodiversity Net Gain? Contact our team to explore whether it meets the criteria for becoming a successful habitat bank site.

hello@civitynge.com

0208 050 6076

hello@civitynge.com

0208 050 6076

CIVITY NGE Blog

Biodiversity Net Gain: What Landowners Need to Know About the New Legal Landscape

BNG Credits Explained: What Developers Need to Know About Achieving 10% Net Gain

Understanding Statutory Biodiversity Metrics: Tools and Resources Explained

Biodiversity Net Gain: What Small Developments Need to Know Now

What land is suitable for a BNG habitat bank? key criteria explained

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