Meet biodiversity net gain requirements for development
How to comply with mandatory 10% biodiversity net gain (BNG) requirements when developing land in England. Covers the …
Construction & Property
Purchase biodiversity credits
How to buy statutory biodiversity credits and off-site habitat bank units when on-site delivery cannot achieve the required 10% net gain. Covers the delivery hierarchy, costs, and purchasing process.
UK-wide
Guide summary
If your development cannot achieve 10% biodiversity gain on-site, buy off-site habitat bank units. Only use statutory credits as a last resort. Follow the steps to calculate, find, and purchase units.
- Get 10% biodiversity gain on-site where possible
- Buy off-site units if on-site is not enough
- Use habitat banks before statutory credits
- Search Natural England’s biodiversity site register
- Agree terms with habitat bank operators
- Include off-site units in your biodiversity plan
- Check units with local planning authority
- Statutory credits cost £42,000 per unit (2024/25)
- On-site costs £5,000-£25,000 per unit
- Off-site costs £20,000-£45,000 per unit
On this page
UK-wide
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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.
This guide explains the delivery hierarchy, costs, and step-by-step purchasing process.
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
-
1
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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2
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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3
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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4
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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5
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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6
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) | GBP 42,000 |
| Area habitat — A2 (medium distinctiveness) | GBP 48,000 |
| Area habitat — A3 (high distinctiveness) | GBP 66,000 |
| Area habitat — A4 (very high distinctiveness) | GBP 125,000 |
| Area habitat — A5 (irreplaceable) | GBP 650,000 |
| Hedgerow (H) | GBP 44,000 |
| Watercourse (W) | GBP 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
Statutory credits can be very expensive for small sites. Even a small shortfall of 2-3 area habitat units could cost over GBP 100,000 in statutory credits. Always maximise on-site delivery first and explore off-site habitat banks before considering credits.
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) | GBP 25,000 - GBP 50,000 | Integrated into landscape design |
| Off-site (habitat bank) | GBP 100,000 - GBP 225,000 | Varies by location and habitat type |
| Statutory credits | GBP 210,000 | 5 units at GBP 42,000 each |
This comparison illustrates why on-site delivery should always be the first priority.