New regulations(*) aim to reduce disproportionate process and cost burdens for smaller developers. Note that it is still expected that developments will seek to incorporate 'nature friendly features'.
The following changes will come into effect on Thursday 6 August 2026:
- A new exemption for development on sites below 0.2 hectares, meaning the smallest developments will not be required to deliver mandatory BNG (unless onsite priority habitat is negatively impacted
- A new exemption for temporary development which is five years or less (unless onsite priority habitat is negatively impacted);
- Modification of the biodiversity gain hierarchy for minor development. This will mean that minor sites which are not exempt form BNG (e.g. over 0.2 hectares) can choose to go straight to off-site in the first instance
- Removal of the existing exemption for self and custom build development.
It is confirmed that Planning Practice Guidance (PPG) will be updated to provide further information to support implementation of these changes.
It is indicated that LPAs should continue to determine applications in line with the existing statutory framework and currently published guidance until the new provisions come into force.
For more detail and a useful explanation see the recent post on the DEFRA Environment Blog here.
(*) The Biodiversity Gain (Town and Country Planning) (Amendments and Transitional Provisions) (England) Regulations 2026
Endnote: Biodiversity Units UK's report shows that the BNG market in 2026 is now at nearly £100m pa., nearly three times the size than last year with currently 268 habitat banks in place.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
