Biodiversity Net Gain:
February 2025
How has the biodiversity net gain (BNG) market developed in the year since requirements were introduced? And how will supply and demand continue to evolve over the next couple of years?
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Introduction
Mandatory biodiversity net gain (BNG) has now been in place for a year, driving investment in nature-based solutions and contributing to the UK’s wider environmental goals.
Where achieving net gain on-site is not feasible or strategically optimal, the private BNG market is essential for providing off-site solutions. In some areas, several habitat banks are already registered and more are in the pipeline, resulting in considerable competition. In others, demand for biodiversity units is outpacing the supply of units (some with no supply at all so far), leaving substantial room for growth of the market.
Our research aims to answer questions on the requirements of the average development, how net gain is being delivered to date, and the potential demand over the next two years, to gain an understanding of how the market is developing and any barriers to growth.
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Navigating the Evolving Market
Key findings
54.7%
1
While there is a wide variation in the average baseline value of developments, a typical range has become evident. There is also variation between greenfield and brownfield sites, although not as large as may be expected.
2
54.7% of the developments are providing all BNG on-site.
3
For both those delivering all BNG on-site and those opting for off-site solutions, we are seeing net gain percentages much higher than 10%.
4
The BNG market is largely operating at National Character Area (NCA) level for now. There are hotspots for development (see map), which indicates where competition for BNG units may arise and, in turn, where opportunity for supply lies.
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Demand for BNG
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Canterbury
Southampton
Bristol
Plymouth
Newcastle-upon-Tyne
Scarborough
Whitehaven
Leeds
Manchester
Lincoln
Nottingham
Birmingham
Cambridge
Norwich
London
Oxford
Key
Highest
Lowest
Key locations
Key locations
Local planning authorities
Local planning authorities
Rate of development (by land area) across National Character Areas
Get in touch
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Introduction
Key findings
Demand for BNG
Get in touch
David Alborough
Joint National Lead, Natural Capital Services Team
Email
01223 751107
01904 558205
Lucy George
Senior Natural Capital Advisor
Email
0113 824 2379
Richard Holliday
Associate, Planning & Development
Email
020 7493 0685
Sophie Davidson
Associate, Research
Email
