The Environment Act is now in place and following the two year transition period, it will require new development to achieve a minimum of 10% biodiversity net gain (BNG).
This change has been put in place to enable the planning system to support, protect and enhance the natural environment in a more measured and consistent way. There are three ways in which this can be achieved:
- Through on-site provision
- Through partnerships between developers and landowners to provide off-site BNG (such as by creating woodland or a wildflower meadow from arable land) or by purchasing biodiversity units on the market
- Through the purchase of statutory biodiversity credits from the Government
This changes the status of natural capital, transitioning it from a concept into an asset which can be traded by government bodies, local authorities, landowners, and land managers.
On the whole we see benefits to most parties involved in the planning and development process. Landowners (including local authorities, wildlife trusts, farmers and private individuals) will have the opportunity to offer land as donor sites. However, green spaces will only maintain their value with investment of both time and money. Vision, management, governance and funding structures will all be important. Furthermore, additional costs or a reduction in net developable acreage will impact on development land values and possibly the viability of schemes. It will be important to ensure that greenfield schemes with low land values aren’t disproportionately affected. And it is hoped that the Government might consider developers having the option of purchasing BNG credits on Green Belt surrounding cities, which could create a popular natural amenity while also protecting the Green Belt.
Research from the Office for National Statistics in 2019 found that urban green spaces increase nearby property prices: houses and flats within 100 metres of public green spaces are on average £2,500 more expensive than if they were more than 500 metres away – an average premium of 1.1%. Similarly the Land Trust has undertaken research which highlights that the Trust’s management of green spaces around homes creates an uplift in house prices estimated to be in the region of £394 million.
Furthermore at a time when, according to the RSPB, 94% of us feel a moral obligation to halt biodiversity loss, developers are increasingly aware of the reputational value of mitigating environmental damage. BNG provides developers with an opportunity to show that the natural environment can be enhanced because of new development – not despite it. And it provides the opportunity for this to be demonstrated literally on the doorsteps of new homes.
Another significant consideration is that local authorities will require specialist advice covering ecology, biodiversity calculation, valuation, legal delivery, verification, and site management. Delivery options and ongoing management advice on the ground will also be required for the required 30-year period once the development has been completed. Furthermore, we are awaiting clarity on how trusted verification bodies will be established as they will be required to manage and monitor biodiversity schemes.
Whilst the direction of travel is clear, in the context of a rapidly changing market and with so much detail still to be established (the latest consultation on Biodiversity Net Gain Regulations and Implementation was published on 11 January and concludes on 5 April), fully understanding the impact of BNG is not easy to determine. Unsurprisingly, we have already seen considerable demand for our services which assess development proposals against assets owned or planned, enabling developers, landowners and land managers to objectively consider the various options that they will face. Whilst there remains much uncertainty, what is certain is that the fight against climate change will take a proactive and joined-up approach from all in the property industry, and this must happen quickly. With this in mind, it is vital that developers take the initiative and assess the implication of development on biodiversity at the outset.
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