Unpacked: The June 2025 BNG Pricing Report

21 Aug

Since BNG implementation began, our quarterly price analysis has become essential reading for the industry. The fifth BNG Pricing Report, published in June 2025, includes 77 habitat banks covering 85% of England's BNG market.

The "Monster" Behind the Market Intelligence

Creating this comprehensive market analysis has become what our CEO Ian Hambleton describes as "a bit of a monster of a job for the team to pull it all together."

Ian reflected on the relationship the team has developed with this quarterly undertaking: "It's a great thing… and it's also 'Oh, we've got to do it again in September!’". Despite the effort required, our team is committed to continuing this work.

"We hear so much from the industry, from developers, but also from habitat banks how useful it's become, and therefore, it's something we're committed to keep doing and improving"

You can get a free copy of the June report - and get all future reports - from this link.

Key insights from the conversation:

Proximity over price - Location to development projects matters more than unit cost for suppliers
Market evolution - Growth from just 19 habitat banks in October 2024 to 105 by mid-2025
Pricing stabilisation - Standard habitat types showing consistent pricing, with variations mainly in rare habitat types
Water course shortage - Critical supply gap forcing developers to pay double through spatial risk multipliers
Regional demand patterns - Clear geographic hotspots emerging with distinct supply-demand dynamics
Market diversification - From large nationwide suppliers to small landowners successfully participating

It’s Not (Just) About Unit Prices

When asked about the key findings from our June 2025 report, Ian reveals a crucial perspective: "A lot of people get quite obsessed by the actual prices of one unit, and actually, often, it's looking a bit beyond that data. It's much more interesting to look at scarcity of habitats, what's available, what's in demand."

The report covers 77 habitat banks out of approximately 90 on the register at the time - representing about 85% of the industry. This comprehensive coverage provides unprecedented insight into market dynamics that go far beyond simple price points.

Key Finding: Location Trumps Price "From a supplier perspective, they're rarely, in our experience, losing it based on the price per unit. They're losing it based on whether they're near enough to the developer, or worse still not finding out about the opportunity." Ian explains.

Market Evolution: From 19 to 105 Habitat Banks

The market transformation has been remarkable. Ian puts this growth into perspective: "If we think back to last October or November, which was 8 months ago, there were 19 habitat banks on the Natural England register, now 105, right? So it's a very nascent market. It's changing quickly."

This explosive growth reveals important stabilisation trends: "You've almost got standard unit types that have early days fluctuated a bit and now settled, and then new rarer unit types which still show some variation over that period."

Notable Trend: Market Diversification "What's great is you're seeing this real diversification of suppliers. You've got these nationwide suppliers like Environment Bank that have got the most number of habitat banks and units, and then at the other end of the spectrum, you've got some small landowners that have got small unit amounts but they're also able to play in this market now."

The Water Course Challenge

One of the report's most significant findings addresses a critical supply gap. "There aren't enough water course units across England for coverage. So, a lot of people are having to pay the spatial risk multiplier and pay double," Ian states.

However, he maintains an optimistic outlook: "I'm fully expecting within 6 months we're not gonna be saying, 'Oh, there's more water course units needed,' there'll be something else." This demonstrates confidence in the market to respond to issues in supply and demand.

Market Signal for Suppliers "If you're a habitat bank thinking about creating units, you should be, if possible, thinking about creating watercourse units 'cause you're gonna sell them," Ian advises, highlighting how the Price Report also serves as a useful intelligence tool.

Regional Supply and Demand Dynamics

The report reveals geographic patterns that traditional pricing analysis might miss. "We're seeing that some areas of the country are particularly in demand. There are some key NCAs where there's lots of development needs, and so those habitat banks have more demand."

Conversely, "there are other areas of the country where they're far away from development, and that's more difficult because there's less demand."

Supply-Demand Equilibrium "A high demand area will be good for so long until there's enough supply to then temper that whole flux. So we're starting to see those supply-demand dynamics in the report.”

The Value of Industry Collaboration

Ian emphasises the collaborative nature that makes these insights possible: "All the data is given to us anonymously by these habitat banks. So, we individually can't reveal any of that information. But collectively, being able to see that from a nationwide perspective, but also the north and south stuff's quite interesting."

The report's credibility stems from this comprehensive industry participation: "We're really grateful to the partners that contribute their data because it wouldn't be as solid if it didn't make up 85% of the industry."

Pricing Stability And Rare Habitats

While pricing stability dominates headlines "in the main, pricing remains relatively stable" - the deeper market intelligence reveals a more nuanced picture.

Apparent price variations often reflect market maturation rather than instability: "Where you see big variations, that's actually on quite rare habitat types that might have only had 2 or 3 suppliers, and then there's another 2 suppliers that have popped up."

Bottom Line: The BNG market is rapidly professionalising, with pricing stability emerging alongside sophisticated supply-demand dynamics that reward proximity and responsiveness over pure cost competition.

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