If you thought Biodiversity Net Gain (BNG) had finally settled into business as usual, the government just proved otherwise. On 15 April 2026, the Government published its response to their consultation on improving the implementation of BNG for minor, medium and brownfield development, marking the biggest recalibration of the regime since it went live in 2024.
So, what’s changed and how could it affect your land?
1. Small sites just got a big break
The headline change is simple: a new 0.2 hectare exemption. From July 2026, developments at or below this threshold will no longer need to deliver BNG, unless priority habitats are affected, then these sites will still be subject to BNG.
The Government estimates that this structural shift could remove around 50% of residential planning permissions from the BNG regime.
Impacts:
Small developers escape disproportionate cost and admin burdens
Planning departments lose a chunk of BNG casework
The off-site biodiversity market may see demand reshaped rather than simply reduced
2. A quiet but important hierarchy reset
Another change is off-site biodiversity gains are being elevated for minor schemes. Previously, developers had to prioritise on-site delivery and justify moving off-site. Now, for non-exempt minor development, off-site is effectively on equal footing to on-site delivery.
Impacts:
Faster planning negotiations
More viable schemes on constrained sites
Stronger, more liquid habitat bank market
3. Loopholes closed, not expanded
While some rules were relaxed, others were tightened. The self/ custom build exemption is being scrapped, after evidence it was being widely used to sidestep BNG.
Impacts:
Larger self/custom build plots (>0.2 ha) now fall back into BNG
The regime becomes more consistent
4. Infrastructure joins the party
The government confirmed that BNG will become mandatory for Nationally Significant Infrastructure Projects (NSIPs) from 2 November 2026. And crucially no sector specific exemptions.
Impacts:
Major infrastructure (energy, transport, water) now fully in scope
Huge new demand for biodiversity units
Long-term habitat creation projects become more attractive
5. Brownfield: the next battleground
Alongside the reforms, the government launched a new consultation on potentially exempting certain brownfield residential developments, which closes on 10 June 2026.
Nothing final yet, but the direction of travel is clear BNG is being refined to better reflect real world viability constraints, especially in urban regeneration.
The bottom line
These changes don’t roll back BNG, they reshape it.
For small developers, it’s relief.
For infrastructure and landowners, it’s opportunity.
For everyone else, it’s a reminder that BNG is still evolving, and fast.
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