2026 Updates to Biodiversity Net Gain: Key Changes for UK Development

2026 Updates to Biodiversity Net Gain: Key Changes for UK Development

Kathryn Brown

Kathryn Brown

Jul, 01 2026

Following a consultation last year, the Government has announced the changes that will be made to the BNG regime this year.

By the end of July 2026, subject to parliamentary scheduling, the Government intends to:

  1. Introduce the new 0.2ha area-based exemption.
  2. Remove the existing exemption for small scale self-build and custom-build development.
  3. Exempt temporary planning permissions granted for a maximum of five years.
  4. Amend the biodiversity gain hierarchy for minor development so that offsite biodiversity gains are given the same preference as onsite habitat creation or enhancement.

Later in 2026, the Government will further introduce an exemption for development whose primary objective is to conserve or enhance biodiversity.

The proposed introduction of a <0.2 ha exemption, up from 25 square metres, will likely remove a significant proportion of minor developments from BNG requirements, reducing the number of applications captured by the regime. The impact on demand is difficult to determine, with figures ranging from a 10% to 70% fall quoted. DEFRA’s estimate of a 50% reduction in applications is based on limited historical data and excludes wider development types. In practice, major schemes remain unaffected and, with Nationally Significant Infrastructure Projects (NSIPs) coming into scope from November 2026, the overall reduction in demand is expected to be much smaller, with only a modest impact on market value.

On the supply side, three key changes are proposed:

  • A shift from Local Planning Authority/National Character Area-based spatial risk multipliers to larger Local Nature Recovery Schemes areas, reducing geographic constraints.
  • Allowing off-site gains to be treated equally with on-site delivery for minor schemes.
  • Granting NSIPs greater flexibility to source off-site units without spatial penalties.

Collectively, these changes are expected to expand the geographic reach of the market and increase competition between habitat providers. This may place downward pressure on prices for more common unit types, but opening the market to a wider audience may help sellers of units secure larger transactions.

Overall, while the exemption is likely to reduce smaller-scale activity, the combined effect of these policy changes is expected to support a more competitive, flexible, and increasingly national BNG market, with long-term demand driven by major developments and infrastructure projects.

Get in touch

For tailored advice on how these BNG changes could impact your land, development plans or biodiversity investment strategy, get in touch with Kathryn Brown here.

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