Biodiversity Net Gain for Landowners

Generate long-term income by enhancing nature to create biodiversity units.

Trusted by Developers and Landowners

The Opportunity

Since February 2024, most development in England must deliver a 10% biodiversity net gain. This applies to housing estates, commercial buildings, infrastructure projects - nearly everything requiring planning permission.

Developers must first try to achieve this increase on their own sites. When they can’t they need to purchase biodiversity units from registered habitat banks.

This creates sustained demand for landowners who can create the right habitats in the right locations. Units are sold through Natural England's public register, with developers seeking schemes that meet their geographic and ecological requirements.

What is BNG?

How It Works

You create or enhance habitat on your land - woodland, species-rich grassland, wetland, or other priority habitats depending on what suits your land and what's in demand local

The habitat is assessed using the government's biodiversity metric based on habitat type, condition, and strategic location. Better quality habitat in well-connected locations generates more units per hectare.

These habitats must be legally secured for a minimum of 30 years using either a Section 106 agreement or conservation covenant. Both mechanisms bind the land itself, not the landowner, so the obligations transfer automatically if the property is sold.

Once approved and registered on Natural England's Biodiversity Gain Sites Register, you can sell your units to developers.

The scheme requires ongoing management and annual monitoring to maintain habitat condition. This responsibility stays with you as the habitat bank operator - developers who buy your units take on no liability.

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What You Can Earn

Biodiversity credit prices range from £20,000 to £150,000 per unit, depending on habitat type, location, condition, and local market demand.

How many units your land generates depends on several factors:

• The habitat type you create (ancient woodland-quality habitats score much higher than amenity grassland)
• The condition you achieve (species-rich, well-managed habitat delivers more units than poor-quality habitat of the same type)
• Strategic location (habitats connecting to nature recovery networks or local priority areas receive higher scores)
• The baseline condition of your land before enhancement

A rough guide: converting improved grassland to species-rich lowland meadow might generate £80,000 to £120,000 per hectare, with features like rivers adding significant value. Converting arable to native woodland generates higher returns per hectare, though woodland takes longer to reach target condition.

Returns will vary significantly based on unit prices in your area.

Returns also depend on your ongoing management costs over the 30-year period. Well-designed schemes balance high credit generation with manageable long-term costs.

Location matters significantly. Schemes in high-development areas with limited local supply command premium prices, as developers prefer buying units close to their sites.

We provide bespoke assessments calculating realistic projections for your specific land.

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What is BNG?

Biodiversity Net Gain is a legal requirement under the Environment Act 2021. Development must leave biodiversity in a measurably better state than before construction began - specifically, a minimum 10% increase measured using the statutory biodiversity metric.

This metric converts nature into standardised biodiversity units based on habitat type, condition, and location. If a development loses 50 units of habitat, it must create or enhance habitat worth at least 55 units.

Developers follow a strict hierarchy: deliver biodiversity improvements onsite first, purchase offsite units if needed, or as a last resort buy expensive government statutory units.

Most developers need offsite units. That's where landowners come in.

Key requirements:
• Habitats must be legally secured for at least 30 years
• Annual monitoring proves habitats are delivering promised condition
• Improvements must be "additional" - genuinely adding to what would have happened anyway, not double-counting existing obligations or agri-environment scheme payments
• Irreplaceable habitats like ancient woodland cannot be offset

For comprehensive detail on how BNG works, see our complete BNG guide.

Resources for Landowners

Create BNG Scheme

Commercial Considerations

Better understand the BNG market and how decisions you make at the start of the project can impact later on.

Landowner eligibility

Understand if you are eligible and your legal commitments if you undertake a BNG scheme.

Nutrient Neutrality

If you are considering combining nutrients and BNG, we explain the complexities of a Nutrient Neutrality scheme.

Looking to Create a BNG Scheme?

If you are considering a BNG or nutrient scheme, get in touch to understand how to ensure maximum benefit from your scheme.

Why Work with Greenshank

We guide landowners through the entire process

From initial assessment through habitat design, regulatory approval, legal security, implementation, credit registration, and sales - we handle the complexity. You provide the land and make key decisions, we deliver the project.

We only succeed when you do

We don't ask you to sell your land or sign restrictive leases extracting value for others. We work at risk and only get paid when your project succeeds, aligning our interests with yours.

Fair commercial terms

You maintain ownership of your land. We handle the technical and commercial complexity. You receive the majority of the value from unit sales.

Industry-leading ecological and commercial expertise

We create schemes to the highest ecological standards, ensuring habitats thrive and deliver the biodiversity improvements promised. Our understanding of both the ecology and the BNG market means we can design schemes that maximise returns while delivering genuine environmental benefit.

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Resources for Landowners

Commercial Considerations Better understand the BNG market and how decisions you make at the start of the project can impact later on. Read more

Landowner Eligibility Understand if you are eligible and your legal commitments if you undertake a BNG scheme. Read more

Nutrient Neutrality If you're considering combining nutrients and BNG, we explain the complexities of a Nutrient Neutrality scheme. Read more

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Avoid losing biodiversity that cannot be offset by gains elsewhere
This ensures that irreplaceable habitats and species are preserved, recognizing that some losses cannot be adequately compensated by enhancements in other locations.

Address risks
Scheme developers are required to manage and mitigate risks to biodiversity. This ensures that potential negative impacts on biodiversity are identified, assessed, and minimised throughout the development process.

Create a Legacy
BNG projects must be sustainable over the long term. This includes committing to a minimum 30-year period for the management and maintenance of enhanced or created habitats. Long-term plans should include monitoring, adaptive management, and contingency measures to address unforeseen challenges.

Stakeholder Engagement
Effective BNG requires the involvement of various stakeholders, including developers, landowners, local communities, and environmental organisations. Engagement ensures that biodiversity objectives align with local ecological, social, and economic contexts and that projects gain broader support and legitimacy.

Integration with Local and National Strategies
BNG initiatives should be integrated with local biodiversity action plans and national conservation strategies. This alignment ensures that BNG projects contribute to broader ecological networks and landscape-scale conservation goals, enhancing habitat connectivity and resilience.

Optimise Sustainability
BNG schemes should promote sustainable practices. This ensures that biodiversity enhancements are not only beneficial in the short term but also support long-term ecological health and resilience.

Monitoring and Management
Regular monitoring and reporting on the progress and effectiveness of BNG measures deployed to ensure compliance with agreed-upon biodiversity targets. Schemes must be managed to achieve these targets.

Stakeholder Engagement
BNG Schemes must be shown to be financially viable for the 30 year period and that all of the long-term monitoring and management requirements can be secured.

Frequently Asked Questions

Your BNG questions answered.

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Can I still farm my land if I create a BNG habitat bank?

It depends on the habitat type. Some habitats like species-rich grassland or wood pasture can be grazed as part of their management. Others like dense woodland or wetland take land out of agricultural production. We assess what works for your situation.

How long does the commitment last?

A minimum of 30 years, legally secured through a Section 106 agreement or conservation covenant. This protects both you and developers buying units - they need certainty the habitat will persist, and you receive payment reflecting that long-term commitment.

When do I receive payment?

Payments are made when units sell to developers. The typical structure is a deposit when the sale is agreed, with full payment released when the developer allocates the units to their project.

What is a National Character Area (NCA)?

An NCA is a distinct region of England defined by its landscape, biodiversity, and geographical features. England is divided into 159 NCAs. Developers prefer buying units from within their own NCA because units from outside their NCA trigger spatial multipliers - they must buy more units to achieve the same biodiversity gain. This means habitat banks in high-development NCAs with limited supply can command higher prices.

What ongoing work is required?

Habitat management and annual monitoring to prove the habitat is reaching and maintaining target condition. Management requirements vary by habitat type - a wildflower meadow needs annual cutting and removal, woodland needs thinning and deadwood management. These costs must be factored into the scheme's financial viability.

How is BNG taxed?

The tax treatment of BNG income is complex and depends on how the scheme is structured. Proceeds may be treated as trading income or, in some instances, capital gains, with significant implications for income tax, VAT, agricultural property relief, and inheritance tax. Simple amendments to agreements can sometimes improve your tax position substantially. We strongly recommend seeking specialist tax and legal advice before committing to a scheme. What works for one landowner may not suit another's circumstances.