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Updated May 28, 2025

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Biodiversity Net Gain under review for smaller sites

The Government has recently turned its focus on reforms to the planning system in order to improve efficiency and increase building. The Planning and Infrastructure Bill contains several proposed changes; among them is a new approach to nature recovery which has been heavily criticised for having the potential to be of detriment to the environment. 

The spotlight has now turned on Biodiversity Net Gain (BNG). In essence, BNG is a system that aims to create and improve natural habitats by ensuring that development has a measurably positive impact on biodiversity, when compared to the biodiversity of the site prior to development. The Government is planning on easing these rules for smaller developments in order to reduce costs and barriers for smaller developers.

The proposals are part of the Government's housebuilding reform plans announced on 28 May 2025. The plans, overall, aim to allow smaller developments to take place faster by removing "onerous regulatory burdens". Amongst the proposals, the Government wants to:

  • allow small developments of up to nine homes to be subject to eased BNG requirements;
  • create a "medium site" category comprising between 10 and 49 homes which will be subject to an exemption from simplified BNG rules. This will, the Government claims, make it easier to deliver biodiverse habitats.

The Home Builders Federation said that BNG has placed a "disproportionate burden on small and medium-sized home builders" and recommended that increasing the housing supply would mean addressing such barriers.

On the other hand, the Wildlife and Countryside Link, which is a coalition of conservation groups, is worried that we're heading backwards. Richard Benwell, chief executive of the Wildlife and Countryside Link, said "Exempting small sites would mean almost three-quarters of developments face no requirement to compensate for nature loss - let alone enhance it. These changes could leave the Biodiversity Net Gain system dead in the water and, with it, the Government's main guarantee of nature-positive planning."


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