Biodiversity Net Gain is now mandatory for all housing developments, requiring developers to demonstrate a minimum 10% gain for biodiversity. Here we explore the Biodiversity Net Gain process that housebuilders must follow and how the system is working.
All land proposed to be developed, and habitats affected, are assessed, and given a value by an ecologist using the Statutory Biodiversity Metric, which allocates a score to each habitat based on its distinctiveness, condition, and geographic location. The developer then needs to work with ecologists, planners, and landscape architects to design the development to achieve the 10% gain. They must also consider the long-term management required to achieve biodiversity net gain over the 30-year period.
Biodiversity Net Gain Hierarchy – On-site or Off-site?
The hierarchy contained within the metric acts to encourage developers to retain existing and enhance habitats on-site to achieve the 10% net gain.
If this is not possible then new habitats can be created within the Local Planning Authority (LPA) boundary – these habitats must be of a sufficient size, distinctiveness and condition to generate the 10% gain required.
If the 10% gain cannot be achieved within the planning boundary, then off-site land will need to be used.
The Challenges of Offsite Biodiversity Net Gain
Using off-site land to achieve the 10% gain presents its own challenges:
- Habitat type – the metric measures ‘Biodiversity Units’, and the number of these units required either on or off-site must be met. As well as meeting the required number of Biodiversity Units any off-site land must be managed to enhance or create habitats appropriate for the habitats lost to the development. The same broad habitat type must be provided, of a similar or higher distinctiveness and condition than that lost from the development site, to demonstrate a 10% gain. Therefore, if Biodiversity Units categorised as woodland units are being lost from the development site, then a woodland of greater size, higher distinctiveness and / or improved condition would be required to be provided off-site.
- Location – the metric can impose penalties for less suitable geographical locations. Off-site land in a different Local Planning Authority Area to the development site will generate a lower score, and so off-site habitat provision close to the development site is encouraged.
- Availability of land – developers may wish to acquire and ‘bank’ land near to proposed development sites. A number of land agents and other providers are beginning to offer Biodiversity Units for a variety of habitats, and prices of land will vary and change as the market develops.
- Legal agreements – for new developments, the planning process will now include the mandatory BNG, and Local Planning Authorities can stipulate the requirements via a Section 106 agreement with the developer. As BNG requires a 30-year commitment then the developer must demonstrate that appropriate arrangements are in place for the ongoing management and monitoring of habitats to achieve the 10% net gain
- Off-site land within the same LPA as the development – this can be covered within the S106 agreement.
- Off-site land outside of the LPA where the development is located – the developer will need to acquire suitable land and enter into a legal agreement to enhance / create the appropriate habitats and manage this land for 30 years to achieve the 10% net gain. This will require a legal agreement with the relevant LPA, or a Conservation Covenant with a Registered Body.
- Biodiversity Units from a Third-party Provider – An alternative option is to purchase biodiversity units from a third party who will provide and manage the land to meet with the BNG requirements. Third parties wishing to sell Biodiversity units to developers must list their sites on the Biodiversity Gain Site Register.
Statutory Biodiversity Credits
If developers are not able to meet the requirements of Biodiversity Net Gain either through onsite or offsite solutions, then Statutory Credits may be purchased from DEFRA. This way of achieving Biodiversity Units is designed only to be used as a last resort and units are priced accordingly.
The Challenges of Biodiversity Net Gain
As the system is still in its infancy the process will start to become less complicated as developers, ecologist, land agents, planners and local authorities become familiar with mandatory Biodiversity Net Gain.
Some key initial challenges include:
- The role of ecologists – the assessment of the type and condition of habitats present on-site can be competently conducted by an ecological consultant with appropriate botanical skills, e.g. FISC Level 4 or above, but there is also a requirement for a proficiency in habitat creation and management in order to create a feasible management and monitoring plan for habitat creation and enhancement.
- The role of LPAs – local authorities will be required to assess and scrutinise the BNG metric and associated documents and plans including the Habitat Management and Monitoring Plan (HMMP), and then oversee the monitoring and reporting of the progress of the habitat creation and enhancement. This will be very onerous to the planning / ecology departments of local authorities.
- Third parties offering Biodiversity Units – Section 106 agreements and Conservation Covenants must be in place for land to be listed on the Biodiversity Sites Register. S106 agreements can be put in place to legalise the management of land within the LPA area as part of the granting of planning permission for a development. However, some LPAs do not appear to have the capacity or process in place for a third party to obtain a S106 agreement outside of a planning application for the sole purpose of habitat creation / enhancement for the provision of Biodiversity Units. Currently very few organisations have registered with DEFRA as Responsible Bodies to agree Conservation Covenants with landowners. Therefore, there may be a delay in sites being able to be registered, resulting in developers having trouble finding suitable off-site land without utilising the services and associated costs of land agents and larger habitat bank companies.
Biodiversity Net Gain Management
Meadfleet have the in-house expertise to support developers with the ongoing management and delivery of Biodiversity Net Gain requirements both on and off-site. If you have any questions in relation to your developments, please contact us at enquiries@meadfleet.co.uk
For further information on Meadfleet and BNG visit our dedicated page.
For further information visit the government’s BNG pages