Biodiversity Net Gain (BNG) – where are we now?

It is now two years since BNG became mandatory under Schedule 7A of the Town and Country Planning Act 1990, following the Environment Act 2021. Since 2024, most developments in England must deliver a minimum 10% biodiversity net gain, either through on‑site improvements or by buying off‑site units or statutory credits. The aim is simple: ensure development leaves nature in a measurably better state.

This new requirement has created a natural capital market in which landowners can generate and sell biodiversity units to developers. When the policies were first introduced, we produced a Landowner's Guide to BNG and an article on Understanding Biodiversity Net Gain, both useful starting points for those exploring the opportunity.

So, two years on, how is the scheme working?

How has BNG worked in practice?

Many rural landowners have embraced the opportunity to create biodiversity units and sell them on the open market. In turn, a range of professional services - accountants, solicitors, land agents and dedicated brokers, have expanded into supporting natural capital projects. A growing brokerage sector now actively connects landowners with developers, with average unit prices reaching around £30,000.

For many landowners, BNG provides a valuable diversification option. However, as each agreement typically binds land for a minimum of 30 years, long‑term policy stability is a key consideration.

What does the future hold for BNG?

The core BNG framework remains unchanged from its 2024 introduction. However, in summer 2025, the Government consulted on reforms to improve implementation for minor, medium and brownfield developments, including proposals to expand exemption categories. These changes have not yet been adopted.

On 16 December 2025, the Housing Secretary announced several forthcoming adjustments:

• An area‑based exemption for small sites up to 0.2 hectares.
• Measures to simplify off‑site BNG delivery.
• A further consultation on targeted exemptions for residential brownfield sites.

A full response and timeline for implementation is expected in early 2026, alongside a separate consultation on BNG for Nationally Significant Infrastructure Projects, due to go live from May 2026. We are closely monitoring these updates.

How will BNG work alongside other planning reforms?

Nature Restoration Fund

The Planning and Infrastructure Act 2025 introduced the Nature Restoration Fund (NRF), a new mechanism for developers whose projects affect protected sites or species. Natural England will manage NRF delivery through Environmental Delivery Plans (EDPs), each covering a defined area and specifying conservation measures to address identified impacts.

Where an EDP applies, developers may choose to make a payment into the NRF to meet their environmental obligations. The Government has confirmed that the NRF is not expected to materially affect the operation of BNG. EDPs target impacts on specific protected species or sites and are intended to unlock development previously stalled by ecological concerns.

Local Nature Recovery Strategies

Local Nature Recovery Strategies (LNRS) place a statutory duty on public authorities to take them into account. LNRS help guide where and how biodiversity gains should be delivered, indicating which habitats are most suitable in which locations.

They also influence the strategic significance element of the Biodiversity Metric, increasing the unit value of habitats delivered in priority areas. LNRS therefore provide an important tool for targeting off‑site BNG so that it contributes effectively to the wider Nature Recovery Network.

Summary

BNG remains central to the Government’s wider strategy for nature recovery and environmental improvement, despite the continuing pressure to increase housebuilding. While further refinements and exemptions are expected in 2026, the core requirement for developments to deliver a measurable 10% net gain appears likely to remain.

We will continue to track policy announcements closely.

How can Foot Anstey help?

Foot Anstey advises rural landowners across all natural capital schemes, including BNG. Our specialist teams in real estate, infrastructure, planning, tax and succession are highly experienced in supporting landowners through every stage of a BNG project, from early land assessment to completing transactions for biodiversity unit sales.