In short, Biodiversity Net Gain (BNG) is a way to contribute to the improvement and restoration of natural habitats.
In theory, BNG aims to leave habitats in a measurably better condition than before development.
Due to the recently passed environmental law, project developers are now legally obliged to achieve a BNG value of at least 10 percent.
However, some councils are debating whether this proportion should really be 20 percent.
BNG will have profound impacts on both the countryside and more urban areas, so it should come as no surprise that some landowners are now being approached by developers looking to offset their projects nearby.
Therefore, if you as a landowner wish to take advantage of the BNG requirements, you should consider the following points:
1. Selling – It has become fashionable to sell land with commercial/residential over-use clauses, however this may not apply to land whose value has been enhanced by a conservation covenant.
Landowners in environmentally sound locations may now want to reserve this favorable location for sale.
2. Development boundary – if your property is outside a development boundary but close to allocated sites, it may still have value.
Legislation directs developers to prioritise local profits, so it is likely that developers will consider larger land areas to accommodate the provision of BNG.
3. Restoration – if the net gain habitat created is destroyed, for example by fire or flood, the landowner may be required to restore the habitat at his own expense.
A site must be secured for at least 30 years from the date of completion of the habitat improvement, so it would be wise to inquire about the availability of insurance.
Although the above questions may be tedious, the payments offered will entice applicants.
For example, statutory credits range from £42,000 to £650,000 per credit, providing landowners with an alternative source of income to replace the soon-to-be-expired BPS payments.
For advice and guidance please contact your local Halls Rural Professional Services office. For more information call 01743 450 700 or 01562 820880.
by John Smith-Maxwell, Rural Chartered Surveyor at Halls
