Key Insights from Biodiversity Units UK’s October 2024 Pricing Report
The October 2024 Pricing Report from Biodiversity Units UK provides a detailed analysis of trends in the Biodiversity Net Gain (BNG) market. Drawing on data from 46 habitat banks, it sheds light on price movements and market conditions as developers increasingly integrate BNG into their projects.
Key Findings
The report shows that prices for many habitat units remain higher in the South than in the North. For instance, Other Neutral Grassland costs £26,700 in the North compared to £27,200 in the South, while Woodland and Forest (Medium) is priced at £30,500 in the North and £32,800 in the South. The most significant pricing variation occurs with Wet Woodland, where prices are 15.82% higher in the South.
Biodiversity Units UK also reports a surge in BNG transactions, with a 250% increase month-on-month, reflecting growing developer engagement. Additionally, DEFRA’s ‘Biodiversity Gain Site Register’ continues to expand, and the number of registered suppliers is expected to double in the next six months.
Notable Price Reductions
Interestingly, some standard units have seen slight price reductions. In the North, Other Neutral Grassland dropped from £27,825 in July to £26,700 in October, reflecting a 4.1% decrease. Similarly, Lowland Meadow saw a small reduction in the South, with prices falling from £39,375 in July to £41,375 in October. These adjustments indicate a settling of prices as more units become available and the market stabilizes.
Changes from July to October
Compared to the July report, prices for habitats like Lakes/Ponds and Watercourses have remained steady, while units like Individual Trees and Lowland Meadow have seen minor fluctuations. The increase in DEFRA registered suppliers from nine to 13 signals growing market engagement.
As the market matures, developers must stay aware of pricing trends to make informed decisions and leverage BNG opportunities.
