UK Planning Reforms Exempt Smaller Developments from Biodiversity Net Gain to Boost Housing Supply
The UK government has introduced exemptions from Biodiversity Net Gain (BNG) rules for developments under 2,000 square meters, affecting an estimated 12,500 homes annually. This change is part of a broader overhaul of the National Planning Policy Framework designed to deliver 1.5 million new homes during this Parliament. The reforms include a default yes to planning near railway stations and mandates for nature-friendly features such as swift bricks.
Housing minister Matthew Pennycook stated that the changes will help "get Britain building again" amid the ongoing housing crisis. However, the move has drawn criticism from nature charities who warn it could undermine efforts for nature recovery.
Critics, including Rico Wojtulewicz from the National Federation of Builders, argue that Biodiversity Net Gain requirements make building more difficult, costly, and susceptible to delays, particularly impacting smaller developers. The BNG policy, which has been in effect for less than two years, demands a 10% increase in biodiversity on development sites but has faced challenges from both campaigners and developers.
In May, a government consultation considered exempting sites up to 10,000 square meters. Additionally, proposals are being considered to widen exemptions on brownfield sites up to 25,000 square meters and to ease off-site nature improvements for medium-sized developments. Environment Bank highlights that increasing exemptions reduce funds available for on-site nature restoration. Developers can use habitat banks, such as the Duxford Habitat Bank in Oxfordshire, which creates wetlands to generate biodiversity units sold to developers as part of off-site mitigation options.
