By Vicki Mordue, Founder and Director of Biodiverse Consulting

As part of its pledge to “get Britain building”, the UK government has announced a series of bold plans to support the construction industry.

These include £100 million in SME Accelerator Loans, a pilot to better utilise brownfield sites, and a highly anticipated review of environmental regulations for small development sites.

A key part of this initiative is the streamlining of biodiversity net gain (BNG) regulations, in an effort to help SMEs currently navigating complex and costly planning rules.

The Background

Since April 2024, “small site” developments have been subject to BNG legislation, meaning any site with over 25 square metres of habitat must increase biodiversity by at least 10 percent.

While this is a central mechanism for nature’s recovery, it has raised several challenges for small developers. Namely, the cost of meeting biodiversity requirements, the difficulty of generating meaningful habitats, and the complexities of navigating the biodiversity metric.

At Biodiverse Consulting, we have helped many clients overcome these barriers. With the right approach, BNG can create opportunities to design profitable schemes that leave a legacy for nature. But to become truly workable for SMEs, the current system must become more proportionate and deliverable.

The Proposal

The consultation centres around four key concepts:

1. Exemptions – The most significant suggestion is to expand BNG exemption criteria, so fewer sites would need to comply. This would benefit many small development projects by improving their financial viability.
2. Changes to BNG categories – The government is considering a ‘medium’ BNG category for developments with up to 100 square meters of habitat, or with 10-49 homes. These projects may benefit from reduced BNG obligations.
3. A revised BNG metric for smaller developments – The small site biodiversity metric may also benefit from revision. Presently, it often overvalues habitats, and can prove complex for the layperson to navigate, making it a key area for improvement.
4. Open Mosaic Habitats on brownfield sites – These higher, ecologically valuable habitats, often found in urban areas and already allocated for development, can be difficult to identify and assess. By updating guidance around OMH identification and considering alternative habitat mosaics when OMHs cannot be feasibly recreated, BNG may be easier to achieve locally.

Alongside these proposals, the government has reaffirmed its commitment to BNG as a central means of supporting nature’s recovery. The consultation acknowledges that BNG processes must be scalable and accessible, while continuing to benefit wildlife.

The Bottom Line

While we need a simpler BNG process for small sites, we also need a robust system that genuinely increases biodiversity and helps establish a thriving nature market.

If implemented, these changes would make habitat creation, retention, and enhancement a priority on fewer small sites. Ultimately, this means site clearance and storage compounds may be less constrained, making operations more cost-effective.

However, BNG is just one challenge faced by housing developers. Rising material costs, labour shortages, and wider regulatory burdens also continue to slow delivery.

We must not let nature become the scapegoat for deeper systemic issues. At Biodiverse Consulting, we are ready to support developers through this evolving landscape, helping them deliver high-quality homes that bring lasting value for nature.