If your development cannot achieve the required 10% biodiversity net gain (BNG) entirely on-site, you can purchase off-site biodiversity units from habitat banks or, as a last resort, buy statutory credits from Natural England.
The BNG delivery hierarchy
Option 1: Off-site habitat bank units
Habitat banks are parcels of land registered with Natural England specifically for biodiversity net gain. Landowners create or enhance habitats and sell the resulting biodiversity units to developers.
How to find and buy habitat bank units
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Calculate your off-site requirement
Use the statutory biodiversity metric to determine how many units you need to purchase. Your ecologist can calculate the shortfall between your on-site delivery and the 10% target.
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Search the biodiversity gain site register
Natural England maintains a public register of biodiversity gain sites. Search for registered sites in your local planning authority area or national character area.
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Contact habitat bank operators
Several private habitat bank operators offer units. Compare prices, location, and habitat types. Units from sites closer to your development and matching local habitat priorities may be preferred by the LPA.
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Agree terms and purchase
Negotiate the purchase with the habitat bank operator. You will typically need a signed agreement confirming the number and type of units purchased and the gain site reference number.
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Include in your biodiversity gain plan
Your biodiversity gain plan submitted with the planning application must detail the off-site units purchased, including the gain site register reference and the number of units allocated to your development.
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Confirm allocation with the LPA
The LPA will check that the off-site units are properly registered and allocated to your development before discharging the BNG condition.
Option 2: Statutory credits (last resort)
Statutory credits are sold by Natural England and are deliberately priced higher than market units to discourage their use. You should only consider credits when both on-site and off-site options have been genuinely exhausted.
Statutory credit prices (from February 2024)
Area credits are tiered A1–A5 by habitat distinctiveness:
| Credit type | Price per credit |
|---|---|
| Area habitat — A1 (low distinctiveness) | £42,000 |
| Area habitat — A2 (medium distinctiveness) | £48,000 |
| Area habitat — A3 (high distinctiveness) | £66,000 |
| Area habitat — A4 (very high distinctiveness) | £125,000 |
| Area habitat — A5 (irreplaceable) | £650,000 |
| Hedgerow (H) | £44,000 |
| Watercourse (W) | £230,000 |
How to purchase statutory credits
- Demonstrate in your biodiversity gain plan that on-site and off-site options are not available
- Apply to Natural England to purchase credits
- Natural England assesses whether you have genuinely exhausted other options
- If approved, pay for the credits
- Include the credit purchase confirmation in your planning submission
Cost comparison for a typical small site
A 0.3 hectare residential development needing 5 additional area habitat units:
| Delivery option | Estimated cost | Notes |
|---|---|---|
| On-site (additional planting) | £25,000 - £50,000 | Integrated into landscape design |
| Off-site (habitat bank) | £100,000 - £225,000 | Varies by location and habitat type |
| Statutory credits | £210,000 | 5 units at £42,000 each |
This comparison illustrates why on-site delivery should always be the first priority.
Legal basis
Primary legislation and key regulations
Read it on legislation.gov.uk (opens in a new tab) legislation.gov.uk