SME HOUSEBUILDERS
BNG: Do you need Biodiversity Units for your development?
BNG policy has been mandatory for small site development projects since 2nd April 2024. This includes housing developments of fewer than 10 dwellings on sites no larger than one hectare (or 0.5 hectares if the number of homes is unknown). There are some exceptions to BNG policy.
To be granted planning permission, SME housing developers must be able to deliver a measurable 10% net gain to biodiversity for each project. They do so by first calculating the value of the existing habitats at the site of development and assessing what will be lost as a result of the building work.
Developers have the responsibility to first avoid impacts as much as possible before replacing everything lost, plus an additional 10% extra. BNG can be delivered by creating new habitats or enhancing existing ones – either on-site or off-site. A developer must demonstrate how they intend to achieve BNG using a biodiversity gain plan.
Most land being used for biodiversity gains assigned to development projects must be legally secured for a minimum period of 30 years to allow the habitats to mature. Over this time, the habitats should be suitably protected, maintained, and monitored to reach its target condition.
Small Sites Metric (SSM)
In collaboration with Natural England, the Environment Agency, and the Forestry Commission, Defra has created a small sites metric calculation tool (SSM) – a simplified version of the statutory biodiversity metric – and published an accompanying user guide.
This metric is used to calculate the value of existing habitats on-site and inform the developer or exactly how much they are responsible for putting back.
The tool can be used by anyone capable of accurately identifying habitats at the development site as well as management requirements for habitat creation and enhancement, typically an ecologist though this isn’t mandatory. There are circumstances in which the SSM cannot be used.
Off-site BNG options for SME housebuilders
With often limited options to deliver BNG on-site, SME housebuilders might look to meet their requirements off-site by purchasing Biodiversity Units from a third party. They can also purchase statutory biodiversity credits from the government as a last resort.
SME housebuilders often require less than a whole Biodiversity Unit of a particular type to meet their requirements (e.g. 0.5 Biodiversity Units of medium distinctiveness grassland). Third party BNG providers, such as Environment Bank, can offer fractional Units to cater for smaller projects.
Environment Bank takes all responsibility for habitat delivery for the full 30 years and helps SME developers find the most cost-effective solution. To discover more about off-site Biodiversity Units for your SME housing project, complete Environment Bank’s simple form.
Biodiversity Unit Request Form
To find out the cost and purchase options for our Biodiversity Units, please complete the form below.