BNG Exemption

From 31st July 2026, there will be a new area-based exemption for Biodiversity Net Gain (BNG).

Under this change, the statutory requirement to deliver a minimum 10% biodiversity net gain will no longer apply to development sites with an area of 0.2 hectares or less. The exemption will apply across all development types, including both residential and commercial schemes.

What This Means

The exemption is intended to reduce the disproportionate costs and delays that BNG has created for smaller-scale developments. In particular, it should:

  • Reduce the need for ecological surveys and off-site biodiversity units on small sites.
  • Improve financial viability for small schemes.
  • Allow local planning authorities to focus BNG requirements on developments where meaningful gains are more achievable.
  • Enable eligible small-scale developments to progress through the planning process more efficiently than under the current rules.

The Government analysis suggests that around half of residential planning applications could fall outside mandatory BNG as a result of this change, which is expected to have a significant positive impact on development viability. 

Important Factors

While the exemption will be welcome to developers of small sites, it is not a blanket removal of biodiversity protections:

  • The exemption will not apply where a site includes high value habitats, and there will still be a requirement to achieve the mandatory 10%.
  • LPA’s will continue to assess the impacts on BNG, and permissions may still be refused if deemed that the development will cause significant harm.
  • This exemption does not come into effect until 31 July 2026, and so all applications up until that point will be assessed under the current rules.
  • Developers should check whether any local rules (e.g. Local Plans or Development Plan Documents) still require BNG at local level.

If this is something that you require assistance with then please contact our Planning team.