Best Strategy for Buying or Selling BNG Units

Biodiversity Net Gain (BNG) units have become a significant element of the planning process in the UK, especially for landowners and developers. With new regulations requiring projects to deliver a positive impact on biodiversity, BNG units present an opportunity for landowners to sell while helping developers meet planning requirements. Understanding the best strategies for buying or selling BNG units can lead to successful transactions, benefitting both parties. 

Here’s how you can navigate this evolving market.

Understanding BNG Units

BNG units are a way to quantify improvements in biodiversity on a particular piece of land. These units are used to offset the environmental impact of new developments. When a developer plans to build on a site that may negatively affect local biodiversity, they are required to compensate by either enhancing biodiversity on the development site or purchasing BNG units to offset that impact elsewhere. This system ensures that development activities contribute positively to biodiversity, instead of depleting it.

Buying BNG Units: A Guide for Developers and the Construction Industry

For developers, purchasing BNG units is often necessary to obtain planning permission. As local planning authorities tighten requirements for biodiversity net gain, securing BNG units is a crucial part of the planning process. Here’s how to ensure a successful purchase:

1. Start Early in the Planning Process: It’s essential to address the need for BNG units early. Integrating biodiversity considerations into the planning phase will prevent last-minute hurdles that could delay projects. Identify how many units you will need as soon as possible.
2. Engage with Reliable Sellers: Build relationships with landowners who have certified BNG units available. Trustworthy sellers will have the necessary documentation, making it easier for you to demonstrate compliance with planning requirements. Additionally, local ecologists or biodiversity brokers can help you find suitable sellers.
3. Evaluate the Cost-Effectiveness: Prices for BNG units can vary based on location and the quality of the habitat being created or restored. Make sure to evaluate different options to ensure you are paying a fair price. Working with an environmental consultant can provide valuable insights into cost-benefit analysis.

Pro tip: It is highly recommended that you buy BNG Units with BNGX to streamline the purchase process. BNGX allows you to buy BNG units in a transparent and secure manner, ensuring that both buyers and sellers meet regulatory requirements. This can be a hassle-free way to source units without extensive back-and-forth negotiations.

Selling BNG Units: A Guide for Landowners and Farmers

For landowners and farmers, selling BNG units can provide a valuable revenue stream. Here are some strategies for a successful sale:

1. Understand Market Demand: Knowing who needs BNG units is crucial. Your primary buyers will be developers, architects, and contractors who need these units to secure planning permission. Engaging with local planning authorities (LPAs) can help you understand the demand in your area.
2. Assess and Enhance Your Land: To create BNG units, land needs to be enhanced to improve its biodiversity value. This could involve creating new habitats, restoring existing ones, or other ecological improvements. Working with an ecologist can help assess your land’s potential for generating units.
3. Certification and Documentation: Make sure that any improvements are properly certified. Buyers will require evidence of the biodiversity enhancements before they make a purchase. Having the correct documentation not only builds trust but also ensures that your units are seen as a credible offset option.
4. Target the Right Buyers: Focus on developers and the construction industry, as they are most in need of BNG units for planning purposes. This market is more reliable than large corporations, who may pursue other methods to fulfil their Corporate Social Responsibility (CSR) needs.

Final Thoughts

Navigating the BNG units market requires a good understanding of biodiversity regulations and the specific needs of your counterparts—landowners looking to monetise their conservation efforts and developers aiming to secure planning permission. By understanding the market dynamics, focusing on the right buyers and sellers, and using platforms like BNGX, both parties can achieve their goals efficiently. BNG units represent a promising avenue for ensuring that development and biodiversity can coexist in a balanced way.