Source · Select Committees · Environmental Audit Committee
Recommendation 29
29
Not Addressed
On-site Biodiversity Net Gain implementation risks increasing housing costs, undermining Government affordability aims.
Conclusion
We are concerned there is a risk that implementing Biodiversity Net Gain (BNG) on housing developments may inadvertently result in unreasonable fees for residents or more expensive housing, which runs counter to the Government’s aim of creating more affordable housing. Communities of all socio-economic backgrounds should be able to afford to live in developments benefitting from onsite BNG. (Conclusion, Paragraph 113)
Government response summary AI-generated
The government's response discusses a consultation on NPPF climate change policies and ongoing work on reducing embodied carbon, which does not address the committee's concerns about Biodiversity Net Gain leading to increased housing costs or fees.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
The Government continues to believe that Biodiversity Net Gain can be delivered without adversely impacting housing affordability. There are a range of steps that can be taken by developers to reduce the cost of delivering BNG, including applying the mitigation hierarchy and focusing on delivering BNG on-site or off-site and working with local authorities, landowners and statutory consultees. We have also introduced a statutory credit scheme to provide a last resort option for developers who cannot achieve Biodiversity Net Gain on-site or through the off-site market. This scheme will be priced above the likely cost of market solutions to ensure that it is used as a last resort option and to incentivise the market. However, where statutory credits are used, they are costed to ensure that they cover the delivery of BNG and meet administrative costs. The Government also published updated guidance for planning fees in 2025 which includes specific reference to BNG to ensure that local authorities can recover appropriate costs from developers. This will help to ensure that developers are aware of the costs associated with BNG and can factor these into their development proposals.
Read the full response on Parliament ↗