The Government’s revised National Planning Policy Framework and the, in general, uplift in objectively assessed housing needs (i.e. houses to be delivered), may lead to more landowners considering selling off-site biodiversity units for mandatory Biodiversity Net Gain (BNG). These are an alternative where developers are unable or unwilling to meet their BNG obligations on site. The offsite supply of biodiversity units remains restricted. For example, a search of West Suffolk on the Biodiversity Gains Site Register leads to no results.
However, the increase in demand for BNG through greater housing obligations does provide landowners with a potential new income stream. There are risks – it is a minimum of a 30 year agreement and places restriction on future land usage, as well as requiring up front costs regarding the installation. That is why we will encourage landowners to discuss with agents from the outset, to consider whether it is a commercially prudent agreement to enter into, particularly when weighing up the opportunity costs.
It is vital that, should landowners wish to then progress to a scheme, that they consider which of one of two options is best for them: Section 106 agreements with a Local Planning Authority or conservation covenants with a ‘responsible body’. There are several factors that will determine which is a better of option, such as if there is a third-party landowner involved, if there are aspects of the scheme that are not specifically related to a planning application or if flexibility is desired. In the case of conservation covenants, these create proprietary interests that are noted on the local land charges register and can govern positive and restrictive usage of the land. As such, it is important that agents and solicitors work closely with their clients to ensure that the agreement is tailored to be suitable for our clients’ needs and specific property circumstances.
Contact Lewis Barber to discuss the issues that one must consider when deciding whether and how to enter into an off-site BNG agreement, for both developers and the landowners.
