The landscape of UK planning has permanently changed. With Biodiversity Net Gain (BNG) now mandatory for most major developments, securing the required BNG units is a critical step in getting your project across the line.
If you’re a developer wondering, “How do I actually buy these units?” this quick guide is for you. We’ll walk you through the process from start to finish.
First, A Quick BNG Refresher
Under the Environment Act 2021, most developments in England must deliver a minimum 10% Biodiversity Net Gain. This is measured using the Statutory Biodiversity Metric, and the gain must be maintained for at least 30 years.
You can achieve this gain on-site, off-site, or through a combination of both. When you can’t meet all the requirements on your own land, you need to buy “statutory biodiversity credits” or, more commonly, purchase BNG units from the market.
The Step-by-Step Process to Buying BNG Units
Step 1: Know Your Number
Before you can buy anything, you need to know what to buy. Your ecologist will calculate your project’s:
- Pre-development biodiversity value: The habitat value of your site before work begins.
- Post-development biodiversity value: The value after your proposed landscaping and on-site ecological enhancements.
The difference between these, plus the mandatory 10% gain, reveals your BNG shortfall. This shortfall is the number of BNG units you need to purchase.
Step 2: Explore the Market (The “BNG Marketplace”) – This is where HabExchange can help!
BNG units are sold by landowners and organisations who have created or enhanced habitats specifically for this purpose. These are known as Off-Site BNG Providers. You can find them through:
- Private Brokerage Companies like HabExchange: Many specialist environmental consultancies now act as brokers, holding a portfolio of BNG units for sale.
- Local Authority Allocations: Some councils are setting up their own strategic off-site solutions where you can purchase units.
- Habitat Banks like our parent HabitatExchange: Large-scale projects where a landowner has registered a significant area of land to generate and sell BNG units—often a efficient and secure option.
Step 3: Find the Right Units
Not all BNG units are the same. When purchasing, you must ensure the units match your specific needs:
- Strategic Significance: The units must be located within the same Local Nature Recovery Strategy (LNRS) area as your development, or in a neighbouring one. There is a hierarchy to follow, so your ecologist will advise on what’s permissible.
- Habitat Type & Distinctiveness: While the metric allows for trading different habitats, finding units that closely match those affected by your development is often preferable and can simplify the process.
Step 4: Secure the Agreement
Once you’ve found a seller, you’ll enter into a legal agreement. This is a crucial step that involves:
- Financial Agreement: Paying the agreed price for the BNG units.
- Legal Covenant: Ensuring the habitat will be legally protected and managed for the required 30+ years. This risk is transferred from you to the landowner and their management body.
Step 5: Register the Gain and Submit Your Application
The purchased units must be officially recorded on the BNG Register, a public statutory register. The seller will typically do this, and you will receive a unique BNG Certificate for each purchase.
You must include this certificate reference number in your planning application to demonstrate to the Local Planning Authority (LPA) that you have secured your off-site BNG commitment.
Key Considerations for Developers
- Start Early: Don’t leave BNG to the last minute. Engaging with ecologists and exploring the market early can prevent costly delays.
- Budget Accordingly: The cost of BNG units varies significantly based on location, habitat type, and demand. Factor this into your project’s financial viability from the outset.
- Due Diligence is Key: Work with reputable brokers and providers. Ensure the habitats are properly established and the legal agreements are robust to secure your discharge of planning condition.
The Final Option: Statutory Credits
If you cannot find suitable units on the market, the government provides a last-resort option to purchase statutory credits. However, this is designed to be a costly and less desirable route, with the revenue used by the government to fund habitat creation elsewhere.
Need help navigating the BNG market?
Our team specialises in connecting developers with verified, high-quality BNG units. Contact us today for a seamless and compliant solution to meet your biodiversity requirements.