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LEGAL VIEW
IN ASSOCIATION WITH:
By Ged Henderson
BIODIVERSITY GAINS MOMENTUM
New planning rules on biodiversity are set to be a game-changer for property developers and a potentially lucrative income stream for farmers and landowners.
The Environment Act 2021 has created the requirement that virtually all future building developments in England must produce at least a 10 per cent ‘uplift’ in biodiversity.
The act’s green aim is a simple one. To ensure that biodiversity is left in a measurably better state than before the development took place.
Biodiversity Net Gain (BNG) is already included in the national planning policy framework (NPPF) and must be included as a part of the planning application process, with that 10 per cent gain set to become a legal obligation for virtually all developments in 2023.
When submitting a planning application, developers will need to demonstrate how they will create that uplift and, in another significant move, maintain it for 30 years.
Biodiversity gains and losses will be measured in ‘units’ taking account of the type, extent and condition of habitats allocated to the development site. And where not enough units can be provided onsite, offsite provision can be counted. That is where the potential opportunity for rural landowners and farmers exists.
Some local authorities are already treating BNG as if it applies now and require it to be provided as part of a scheme. And a number of Lancashire-based businesses are already looking at creating specialised land banks and offering developers offsite solutions.
Susan Gutierrez-Inostroza, of Lancashire-based Legacy Habitat Bank (LHB), based in Barnacre, near Garstang, says: “If you have a development proposal that requires planning permission, it is highly likely that BNG requirements within the new environment bill will impact your project.
“However, it can be challenging for developers trying to mitigate biodiversity loss and achieve the 10 per cent gain required to secure planning approval, which should be through on- site provision as far as is possible.
“The ability to deliver on-site biodiversity is often limited and impractical, due to the value of development land being higher for housing and the chance of having enough space within the footprint of the development scheme unlikely in many cases.
“There are other challenges. For example, developers will be liable for the on-site BNG provision, monitoring, and reporting for the next 30 years, even once the site has been sold.”
Susan believes developers will increasingly look to these offsite solutions, through specialised habitat banks, using BNG credits that they can buy. She says: “We believe off-site BNG credits will be the practical way for most developers to offset their BNG uplift requirements and avoid costly time delays in gaining planning consent.”
She says that demand for those credits is expected to be high, with major development companies having thousands of housing and commercial developments in the pipeline in Lancashire alone.
LHB is looking provide a ‘turnkey solution’ for those developers, allowing them to deliver
the required 10 per cent net gain by sourcing BNG units and providing ongoing monitoring, management, and reporting in line with an agreed management plan.
There is also an opportunity for landowners to receive income from their land in exchange for units and credits. For example, farmers or businesses may commit to using closed landfill sites or unused farmland to create offsite biodiversity units to sell to developers.
Susan Gutierrez-Inostroza
Susan says: “We will work with farmers and landowners to provide habitat banks for BNG unit creation and create receptor sites for protected species.
“In return, the landowner receives a financial incentive greater than could be obtained from other schemes, for example, sale and leaseback
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