Landowners & BNG

The Environment Act 2021 requires that all future developments now produce at least a 10% uplift in biodiversity, which can be purchased off-site as ‘Biodiversity Net Gain Units’ (BNG Units). As a result, landowners can maximise their income streams by offering BNG Units to developers.

Creating BNG Units on unproductive low-grade land could provide a significant income to landowners whilst allowing them to retain ownership of the land and some continued use. However, you must be able to enter into a 30-year agreement that attaches a covenant to the land to ensure that the habitat creation that forms the BNG Units is maintained according to the management plan that is agreed with the Local Planning Authority as a part of the process. 

BNG Units are a new concept and can be complex due to the unique requirements of each development site and the individual characteristics of each BNG Unit habitat. Legacy HB is looking to work with landowners to help deliver BNG Units on new development projects by creating a ‘joint venture’. There will be no set-up costs to the landowner. The value of each BNG Unit created will vary, but prices per BNG Unit of £40,000 have been achieved, with the national average thought to be in the region of £20,000 - £25,000. Naturally, there are costs to BNG Unit creation, registration, and sales; nevertheless, there is significant income potential.