Background: Delivering biodiverity net gain (BNG) units offsite is a critical element of the success of mandatory BNG, to be introduced in November 2023. In April, the Future Homes Hub held a workshop with the Markets Advisory Group, a group of land providers, agents and brokers, to understand the shared challenges and determine viable means of resolving them.

Purpose: We invited members of the Hub to join experts from a broad range of backgrounds, to understand the requirements of parties in the Biodiversity Net Gain Market and to facilitate effective engagement between them.

Chair: Nick White, Natural England

Date: 27^th March 2023

Who was there:

Barratt Developments

Bellway

Buckinghamshire Council

Ceres Property

Defra

Duchy of Cornwall

Environment Bank

Finance Earth

Gleeson

Hertfordshire County Council

Integrated Land Management

London Wildlife Trust

Natural England

Oxfordshire County Council

Persimmon Homes

Planning Advisory Service

Surrey County Council

Taylor Wimpey

Thakeham

What we covered: Working in groups representing all stages in the offsite BNG process, we looked at how parties plan to find buyers and sellers of units and their experience to date, reviewing the merits and challenges of different points of interface.

We then explored how buyers of units can know what is available in the market, what land is available and at what price. A key concern raised was the confidence in the long-term habitat management and the need for an assurance scheme.

Groups were then invited to discuss what would be needed to make the market function equitably and transparently. This followed on from the previous meeting where the Environment Bank and London Wildlife Trust presented their schemes and the group reviewed their merits. These, and other current offers in the market were discussed as well as the concept of a national, commercial register of available units.

We also looked at the process, particularly the expectations of Local Authorities, and the information flow at planning as well as what developers require from unit providers.

With Defra, Natural England and the Planning Advisory Service able to respond to particular concerns and clarify points raised, we were able to have productive and frank discussions as well as developing key networks between interested parties.

Key issues and next steps

• How to deliver a transparent and functioning market. 

Next steps: to explore how to enable a national commercial register of sites that allows clarity of units available, cost and commitment to join register.

• High expectations on responsibilities of LPAs, and limits to their capacity.

Next steps: to streamline information required/standardise format, clarity of guidance and consistency of process (e.g local nature recovery strategies) and to provide schedule of BNG sites available. 

• Concern on assurance of quality of offsite management of BNG sites.

Next steps: to support Natural England in their trial of a quality assurance pilot for the management of offsite units.

• Misinformation/misunderstanding for unit providers. Not appreciating the long-term commitment, costs of carrying out conservation management, value of land following conclusion of 30-year period. 

Next steps: to work with Defra and other content providers to determine specific user need for BNG guidance, providing consistency and clarity in the process.

In addition, a small forum of developers came together after the meeting to consider the opportunities presented through jointly procured land with the potential to deliver biodiversity net gain off-sets at a landscape-scale, servicing multiple developments and over multiple years. If this seems workable, the Hub will provide further details as a framework for others to follow.

Find out more about biodiversity net gain

For further information please contact Chandeni Bissumbar