Biodiversity Net Gain changes that are shaping the real estate sector.
SAY is seeing crucial sustainability regulations and tightening legislation coming into force, which has been affecting our clients to varying degrees.
In this article, we focus specifically on Biodiversity Net Gain and evaluate the potential risks and opportunities for real estate developers, landlords, investors and operators.
Biodiversity Net Gain (BNG)
(Source: Biodiversity Net Gain: An Introduction to the benefits, Natural England 2022)
What is Biodiversity Net Gain (BNG)?
BNG is an approach to property development, whereby the natural environment must be left in a measurably better state than before the development and is maintained for at least 30 years following completion under a ‘Net Gain Agreement’.
BNG has its origins rooted in the Environment Act 2021, which stipulates that new planning applications will only gain consent subject to demonstrating at least 10% BNG.
During the planning and development stages of the schemes we work on, SAY is recognising the increasing importance of BNG in fulfilling green planning obligations and project viability.
The approach went quiet during 2022, but it is speculated to be fully mobilised in November 2023.
Going forward, hiring an ecology consultant to assist with development consent at the design stage will be considered the norm in property developments. The role of an ecology consultant is to undertake research and surveys and provide advice on ecological matters surrounding a development.
This consultancy advice would then be used to determine what is known as ‘habitat distinctiveness’, which refers to the relative scarcity of a habitat within the proposed development’s location and its importance for nature conservation. Consideration is also given to each individual species that the habitat supports.
How can BNG be achieved?
Depending on the restrictions of the development, BNG can be achieved both on-site and off-site.
Examples of on-site BNG are habitat creation and enhancement through landscaping, creating green or blue infrastructure, green rooms and walls.
Examples of off-site BNG are contributing to a biodiversity register, purchasing biodiversity ‘credits’ and habitat banks (where a habitat is created in advance prior to the loss occurring) in partnership with other public and private landowners (offsetting if you like).
What are the implications?
For BNG, there are several implications that may affect our clients. These include:
- How will BNG be measured and managed during the 30-year maintenance timeline under the ‘Net Gain Agreement’? Are there costs associated with this?
- Increased estate staffing costs to cover landscaping and/or a maintenance of biodiverse habitats and green spaces. Could this lead to a higher service charge and/or operational expenditure?
- Promotion of health and wellbeing and offering residents the opportunity to connect with nature, helping to fulfil the ‘S’ in ESG.
- Opportunities for green jobs and investing in the habitat management sector.
- Nature-based solutions and contributing to net zero targets.
Our team at SAY, who specialise in working with developers and operational management, can offer you advice and support on the BNG regulations.
If you would like to speak to our team further about how to repurpose or design your development, please contact Yasmin Booker at yasmin@sayproperty.co.uk.
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