Habitat Banking and BNG
Biodiversity Net Gain – How to approach your project
In April 2024, the Environment Act became law and requires all developments to provide a 10% net gain, unless it falls under the limited ‘exempt’ requirements.
Biodiversity Net Gain (BNG) is an approach to increase and improve biodiversity and habitats in the UK through development and land management, and ensure development has a positive impact on biodiversity and avoids any harm.
To get planning permission, all planning applications require the submission of:
- A complete metric sheet
- A habitat plan – mapping habitats before and after development.
- And a Biodiversity Gain Plan (usually completed post permission to satisfy a planning condition).
The statutory metric is usually completed by a qualified ecologist who is able to identify habitats confidently. This will require a Preliminary Ecology Assessment, which involves them visiting the site and doing a walkover to identify the initial habitats that are on-site; they will then complete the metric sheet and discuss how to meet the gain requirements post-development.
To provide the gain, there are two main ways to approach (for non-national projects):
On-site Gains
On-site gains are within the redline application boundary and provide an uplift in the habitats on site through a like-for-like approach – replacing habitats with similar ones. This can be done through enhancing on-site habitats under the terms of the metric or creating new habitats that are appropriate for the site.
From experience, this might involve including any blue line land proposed to be used for an uplift in the redline application line to avoid legal requirements.
It is also important to note that on small sites, private gardens cannot count towards an uplift (as these cannot be managed or agreed for 30-year maintenance) therefore offsite units might need to be used as an alternative route.
- Off-site Gains on registered biodiversity land If you are unable to provide the gain onsite, off-site units can be used (off-site includes any blue line application land). For off-site units, this will require the site to be formally registered as a biodiversity site and will require a S.106 legal agreement to secure the units post permission. The land is also to be managed for 30 years and is subject to this obligation. You can also purchase off-site units from another landowner whose land units are on the market (useful for a small site that cannot meet gains on-site).
Exemptions
There are some exemptions to BNG; these are, however, minimal. Certain developments which fall under householder applications and are small-scale self-builds are exempt. The de minimis exemption can be used only when there is minimal impact on habitats and meets all criteria. The exemptions are as follows:
- De Minimis Exemption - Designed for the smallest planning applications. Exemption applies where development does not impact priority habitat AND impacts less than 25 square metres of non-priority habitat AND impacts less than 5 metres for non-priority linear habitats. All these requirements must be met for the application to be considered an exemption.
- House Holder Development - Any extensions and modifications to existing houses. If it is a householder application, it is usually exempt.
- Small-scale, Self Build and Custom Housebuilding projects - Exemptions apply to self and custom build developments of no more than 9 dwellings on sites no larger than 0.5 hectares.
- Biodiversity Gain Sites - If the site is registered as a biodiversity gain site and is specifically created to enhance off-site units.
- Application submitted before February 2024 – these do not require a 10% BNG as they were in the system before the Environment Act was enacted.
How to Approach
It is recommended that the opinion of a qualified ecologist be sought out within the preparation stages of an application to decide the correct approach for the level of development and the correct surveys be identified regarding protected species such as bats, great crested newts, etc. At IPS, we work with a variety of ecological consultants and can recommend them according to your project size and budget.
Ecology is an important part of planning applications; it is important that the application complies with the Local Authorities’ requirements for BNG (some LPAs have a larger net gain requirement than the national requirement), and, more recently, compliance with Local Nature Recovery Strategies (LNRS) is essential. LNRS enable collaboration of authorities and involves various groups, such as communities, farmers, landowners, etc, in creating and benefiting from BNG.
Post Permission and Conditions
Post permission, a Biodiversity Net Gain Condition is likely attached to the permission to ensure that the relevant information relating to the net gain is submitted to the LPA. This usually involves a:
- Biodiversity Net Gain Plan – The BNG Plan is a statutory requirement of the BNG regulations. It is to demonstrate how the development will deliver the gain required.
- S.106 / Legal Agreement – For off-site gains, this is to ensure that there is a minimum of a 30-year plan in place to oversee the units.
For developments that are proposing significant gains, a Habitat Management and Monitoring Plan (HMMP) might be added to the conditions. This is advised to be carried out by the same ecologist who prepared your net gain assessment. The HMMP is also required in off-site gains in the form of the S.106 / legal agreement.
It is important to note that gardens are not able to meet BNG requirements and therefore gains for small sites are usually best addressed through buying credits to keep costs lower. But where possible, it is recommended that gains are provided on-site, as this will avoid costs for legal agreements. However, the best approach should be advised by your ecologist.
he Biodiversity Gain Plan (BGP)
The BGP has a template on the Gov Website which sets out the requirements. The ecologist working on the project can input the information into the template provided. They know the site and ecology details the best, which will allow them to fill this out accurately. This is submitted after you gain permission.
Habitat Management and Monitoring Plan (HMMP)
A HMMP is required where significant net gains for biodiversity are achieved on-site or for off-site gains. These details how the land will be managed over the next 30 years to:
Create and enhance habitats for BNG
Manage and monitor the BNG
Again, there is a template and guidance for filling out the HMMP plan. It is recommended that this condition to be filled out by a competent person, likely to be the ecologist who has carried out the previous BNG requirements.
- For off-site gains, this should be agreed through an S.106 agreement or to confirm with the responsible body if you’re securing gains with a conservation covenant.
- For significant on-site enhancements, this should describe how it will be maintained and how the habitat enhancement will be implemented. This should be in the form of the HMMP template to be submitted with the BGP.
There are templates online (GOV.UK) to support the completion of the HMMP and a S.106 for legal agreements. These are best completed by those who are qualified in the industry and have experience in completing them.
These documents are then to be submitted to the relevant LPA, and once accepted, the development can begin. These conditions need to be discharged before any development begins.