Biodiversity Net Gain: Challenges and Opportunities in the Property Development Sector

This week, Searchland hosted a roundtable in London with leading real estate professionals to discuss one of the industry's most pressing topics: Biodiversity Net Gain (BNG). The conversation was vibrant, honest, and full of insights, reflecting the complexities and opportunities that BNG presents to developers, councils, and the broader community.

As a co-founder of Searchland, I’ve worked at the intersection of real estate and innovation for some time. I left the roundtable with a deep sense of our multifaceted challenges and optimism that we can turn these challenges into opportunities with the right tools and collaboration.

The Challenges of Biodiversity Net Gain

Long-Term Management and Maintenance

One of the most prominent concerns was the uncertainty surrounding long-term site management. Developers need clarity on how much of the unit cost is allocated to maintaining biodiversity commitments over 30 years. For sites with multiple estates, passing these responsibilities to future occupants or renters, often via service charges, adds to the complexity.

This model, however, has limits. Some local authorities (LAs) and registered housing providers (RHPs) impose service charge caps—Bristol is a prime example—which shift the financial burden back onto developers and risk undermining affordable housing.

Another gap is expertise. Many housing associations and landscaping teams are not equipped to manage biodiversity-focused estates. Unlike traditional landscaping, biodiversity management requires specialised skills currently scarce in the industry.

Financial Impacts and Housing Affordability

The financial implications of BNG cannot be overstated. While a laudable baseline, the 10% minimum net gain often raises costs—leading to an almost inevitable squeeze on affordable housing. Phased developments compound these challenges, as each phase triggers a new 30-year commitment, further escalating costs and uncertainty.

Navigating BNG in Planning and Development

Strained Councils and Regulatory Inconsistencies

Local councils are under-resourced and struggling to keep pace with BNG regulations. Developers report delays, inconsistent assessments, and a lack of precise guidance. Ecological assessments, for instance, often yield vastly different outcomes depending on the timing of surveys—a seasonality issue the current regulations fail to address.

Offsite Units and Credits: A Murky Market

The market for offsite biodiversity units and credits is a patchwork of uncertainty. Developers often need to look outside their catchment area to secure units, risking higher costs due to multipliers. Even when credits are listed, many are not legally ready, with unresolved Section 106 agreements and concerns about the long-term viability of providers.

A More Promising Future

Despite these hurdles, the discussion had some bright spots. Some councils are proactively identifying BNG sites and streamlining the process for developers. The increased involvement of ecologists earlier in projects is also leading to more thoughtful, BNG-aligned designs.

Large-scale developments, which traditionally integrate placemaking principles, find it easier to embed BNG into their designs. These efforts can transform biodiversity measures from regulatory obligations into community assets when done well.

One of the most inspiring takeaways was the potential of BNG to foster deeper community engagement. Educating residents about biodiversity—such as why some grass areas are meant to grow wild—can help shift perspectives on land use and encourage local stewardship.

The Role of Innovation and PropTech

At Searchland, we see enormous potential for Proptech to address many of the pain points discussed. For instance:

• Rapid Assessments: Developers need tools to assess baselines with 80% accuracy within minutes, not days.
• Integrated Ecosystems: Importing ecological data into platforms like Searchland would enable developers to cross-reference insights and make more informed decisions.
• Spatial Credits: Clear, accessible databases of available offsite units, along with transparency around costs and risks, could demystify the credit market.

A Call to Action

Ultimately, BNG is more than just another regulatory hurdle—it’s a cultural shift in how we think about land use and development. As one of our attendees aptly put it, biodiversity needs to “sit in the boardroom for it to succeed."

This means more education across the sector, better collaboration between councils and developers, and more innovative tools to streamline the process. It also requires a shared commitment to refining the system—addressing gaps in training, creating reliable markets for units, and ensuring that biodiversity's benefits are both tangible and lasting.

The challenges are significant, but the opportunities for innovation, collaboration, and impact are even more important. Let’s keep pushing forward.

A special thanks to our friends at TheBusinessDesk.com and delegates from Forsters LLP, Urban&Civic, Related Argent, Gerald Eve, Carter Jonas, Farebrother, Chancerygate, SNG (Sovereign Network Group), Knight Frank, and ‍Rider Levett Bucknall RLB.

Hugh Gibbs
Co-Founder, Searchland