Recent changes to Biodiversity Net Gain (BNG) regulations may provide welcome relief for farmers, landowners and rural businesses considering smaller development projects in England.
From 6 August 2026, new regulations introduce exemptions from mandatory BNG requirements for certain developments. In particular, the exemption applies where development:
- Is on a site of 0.2 hectares or less; and
- Does not affect a priority habitat (that is, a habitat specified by legislation as being of high biodiversity value and therefore difficult to recreate).
A further exemption applies to certain temporary developments lasting no more than five years, provided there is no impact on a priority habitat.
For many rural businesses, these changes could be particularly relevant when considering diversification opportunities. Depending on the circumstances, projects such as small farm-based commercial units, tourism facilities, rural enterprises and other modest development proposals may benefit from a simpler planning process where the new exemptions apply.
The regulations also make an important change to the biodiversity gain hierarchy. Previously, there was a strong emphasis on delivering biodiversity improvements on-site. Going forward, that hierarchy will apply only to major developments. For smaller schemes, developers may have greater flexibility in meeting biodiversity requirements through off-site measures where appropriate.
This may prove valuable for rural landowners where on-site habitat creation could reduce operational land, affect agricultural productivity, or conflict with the practical use of a holding.
The changes do not remove Biodiversity Net Gain as a key feature of the planning system. However, they do indicate a more proportionate approach for smaller developments and may create additional opportunities for rural businesses seeking to diversify and invest in their land.
With many farming enterprises continuing to explore alternative income streams, now may be a good time to review planned projects and assess whether these new exemptions could assist future development proposals.
Find out more about our agricultural and rural affairs team and how they can assist you on our website.
