February 2025 BNG Pricing Report: One Year On

Our team is on a mission to bring clarity and certainty to the complex world of Biodiversity Net Gain. With over 4,000 hours of BNG research and the largest network of Habitat Banks across England, we help developers navigate planning regulations while securing optimal unit prices.

Our latest report analyses pricing data from 65 BNG habitat banks, offering crucial insights that help you avoid costly mistakes in unit procurement.

Key Findings from the Report:

     •     BNG Pricing Stabilises, but Regional Differences Persist

The February 2025 report examines pricing across 65 Habitat Banks in England, including both registered sites and those expected to launch within the next six months. While prices have remained relatively stable despite a 25% increase in suppliers, significant regional pricing differences remain.

Watercourse units in the South are priced at £144,866, a 15.88% premium over the North (£125,013).

Lakes/Ponds Non-Priority Habitat saw a 27.34% price drop in the South (£58,666) compared to the North (£80,735).

Woodland and forest units remain slightly more expensive in the South (£36,360) versus the North (£34,420).

     •     Growing Demand for BNG: 2,000 New Applications per Month

Since BNG regulations took effect, an estimated 7,500 planning applications have required BNG, with new applications growing at 2,000 per month. This demand is expected to continue rising, driving further market activity.

     •     Location More Important Than Price for Buyers

Due to spatial risk multipliers, developers prioritise unit proximity to their project over raw pricing differences. The report highlights a heatmap of demand hotspots, showing where supply is needed most.

     •     BNG Supply Expanding but Still Limited

The Natural England Biodiversity Net Gain Registry now lists 43 registered sites covering 1,216 hectares, with more being added weekly. However, supply shortages persist in key regions, particularly for high-distinctiveness habitats like Mixed Deciduous Woodland and Floodplain Wetland Mosaic.

     •     Market Shifting Towards Conservation Covenants Over S106 Agreements

A growing preference for Conservation Covenants over Section 106 agreements is emerging as the preferred legal mechanism for Habitat Banks to register their BNG Units, streamlining the process and increasing certainty for buyers.

     •     Education & Standardisation Improving, But Challenges Remain

While developers and planning consultants are becoming more familiar with BNG requirements, Local Planning Authorities (LPAs) still vary in their approach. Submitting well-prepared documentation early in the planning process remains crucial to avoiding delays.

     •     Certainty of Delivery is the Key Decision Factor for Buyers

The most important factor in finalising deals remains certainty of delivery, with Natural England registration essential to ensuring planning compliance.

Comment from Biodiversity Units UK

“One year on from the introduction of Biodiversity Net Gain, we’re seeing a maturing market with increasing demand, but also supply challenges in key regions. Developers are becoming more educated on BNG requirements, but regulatory processes remain inconsistent across LPAs. This report provides essential insights to help navigate the evolving landscape. As more Habitat Banks come online, we expect further price stabilisation and improved transaction efficiency.”

— Ian Hambleton, Founder & Director, Biodiversity Units UK

We're very grateful to everyone who contributed, including the great Angus Walker at Broadfield.

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