From today (6th August), developers can now benefit from a new 0.2 hectare exemption, which means smallest developments will not be required to comply unless “priority habitat” is negatively impacted.

There has also been a modification of the BNG hierarchy for minor development, which means developers of sites that are over 0.2 hectares can choose to go straight to offsite in the first instance.

A new temporary development exemption has also been introduced for land that is to be reinstated within a period of five years or less. Again, this does not apply if “priority” habitat is negatively impacted.

The existing exemption for self-build and custom-build development has also been removed.

These changes come from a government consultation launched last year, with the report published in April 2026.

“The government considers that these changes will help to reduce the burdens on the smallest developers and local authorities,” read a government statement outlining the changes.

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“This will benefit the whole BNG system by focusing resources on larger development, which has the greatest impact and therefore the potential to deliver the greatest benefits to nature.

“It is important to note that though we are reducing the BNG burden for the smallest developments, we would still expect these developments to incorporate nature-friendly features.”

Terry Woodley, managing director of development finance at Shawbrook, has welcomed these changes and can see them supporting SME developers “acutely” affected by previous BNG requirements.

“As pressure continues to build on the government's 1.5m homes target, it's encouraging to see the government commit to meaningful changes to help streamline the complexities of the planning system,” he added.

“With a new prime minister and cabinet in place, developers will be keen to hear how other parts of the planning puzzle — such as recruitment, supply chains and financial support — will slot into place to get shovels in the ground and cranes in the sky.”