Builders suffer as planning departments get bunged up with BNG
Today marks the one-year anniversary of the introduction of biodiversity net gain (BNG) for small sites. It appears to be not going too well for builders.
According to the Home Builders Federation (HBF), SME home builders are facing huge challenges to implement BNG requirements and it is largely down to the lack of capacity in local authority planning departments.
A report from the HBF today reveals that 98% of small and medium-sized enterprise (SME) builders are finding implementation of the new requirements a challenge, with delays in the process as a result of a lack of local authority capacity being the biggest barrier.
The research is based on a survey of home builders and a freedom of information (FOI) request to local authorities.
BNG was introduced via new legislation in 2019 to ensure that new developments enhance wildlife habitats and ecology by requiring developers to achieve at least a 10% net gain in biodiversity. Since the requirement was introduced on 12th February 2024 (and 2nd April for smaller sites), it has shown that new homes and environmental benefits can be delivered together.
A lack of capacity in local authority planning departments has long been a frustration for the building industry, the HBF says. Delays to the processing of planning applications prevent builders from getting onto sites to start work, delaying the delivery of new homes. However, already overstretched departments now have the additional responsibility of BNG to contend with, delaying application sign-off further and putting yet another barrier in the way of increasing housing delivery.
94% of respondents to HBF’s survey said that they have experienced delays in processing planning applications due to BNG while 90% experienced delays specifically due to insufficient BNG expertise or resources within local authorities.
Despite the significant additional workload required to oversee and monitor BNG, the HBF found that:
- Nearly 40% of local authorities lack access to in-house ecological expertise.
- A quarter of councils have seen ecologists leave their role in the past year.
- One in three councils have not expanded their ecology teams since BNG was introduced.
- Around a quarter of staff recruited to support BNG requirements are temporary.
Local authorities are also increasingly reliant on external consultants, spending an average of £23,000 per year per council on BNG-related consultancy fees. This constitutes the majority of central government’s BNG funding for local authorities before the costs of hiring new staff or providing training for existing staff are even taken into account. Furthermore, the National Audit Office estimates that government funding equates to just 0.66 full-time equivalent (FTE) ecologists per council, far below the level required for effective implementation, the HBF says.
While larger sites may be able to accommodate BNG requirements on site by creating green spaces or adding in features that support biodiversity, smaller sites – where there is no available space to do so – are often reliant on buying off-site biodiversity units to meet the requirements. However, one year on there is still a shortage of suitable credits available, increasing their costs and posing a threat to the viability of smaller house-building sites. 85% of home builders with small sites believe the costs of BNG are not proportionate given the size of their projects.
Survey respondents also identified inconsistent BNG guidance, additional local policy requirements, and a lack of suitable external ecological expertise as posing a risk to their business and their ability to build.
HBF is calling on government to ensure that local planning authorities are sufficiently staffed and placed on a sustainable financial footing. Government should also put in place a strategy to address the recruitment crisis for ecologists in both the private and public sectors.
The November 2024 budget statement included plans to support local authorities with 300 additional junior planning officers across the country but there is no confidence that this will suffice.
HBF chief executive Neil Jefferson said: “The home building industry has embraced BNG and is committed to both increasing housing supply and protecting and enhancing our natural environment
“However, if we are to increase supply alongside these new requirements it is vital to address emerging barriers to implementation, such as the insufficient resourcing of local authorities, shortage of ecologists, and inadequate national guidance. Government must provide clarity, funding, and support to planning departments so that they can deal with applications effectively and remove this barrier to getting new homes built.”
Some think the solution is bringing in more consultants.
Robert Oates, chief executive and founder of ecological consultancy Arbtech, said: “For too long, the system of environmental regulations in the UK has been overcomplicated and burdensome. But if the government thinks that tinkering around with regulation and passing the Planning & Infrastructure Bill is going to unlock 1.5 million new homes, they’re seriously misguided.
“If we’re going to move the dial on planning, the government needs to tackle the lack of resources. The answer is simple: the government must draw on the established expertise of the private sector, where consultants could be accredited to act swiftly on ecology, planning, and licensing applications, in partnership with planning authorities. The government could even charge companies to be on the accredited list—a boost to the exchequer. Until then, these regulatory changes are like installing a powerful new engine in the planning system, but leaving the handbrake on.”
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