Ahead of new biodiversity net gains (BNG) regulations set to come into force this month, research from Shawbrook has revealed that almost one-third of developers (31%) are unaware of the rules.

The BNG regulations have been introduced to aid the recovery of nature while developing land, by ensuring that wildlife habitats are left in a better state than they were before the environment was developed.

This will apply to projects in the Town and Country Planning Act 1990 — unless exempt — and will be effective for small sites from April 2024.

Only one-in-five (22%) developers believe the new regulations won’t have an impact on their business, highlighting the importance of awareness.

Those who are aware of the regulations are already spending money to factor in BNG compliance as part of their development costs — with 41% of developers’ total costs being spent on ensuring compliance, on average.

To make properties sustainable, investing in high-quality insulation is the most common action taken by developers, with 28% having done so.

More than one-quarter (26%) have invested in greener building materials, and 26% have invested in renewable energy systems such as solar panels.

Some 26% have invested in carbon offsetting their building work.

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Other improvements to ensure sustainability include:

• 25% — working with local councils to ensure good public transport links
• 25% — improving waste disposal of building materials
• 24% — reusing building materials
• 23% — including green areas and cycle paths in their development
• 23% — adding electric car charging points
• 21% — creating spaces/habitats for local wildlife
• 21% — reducing traffic to building sites
• 18% — re-wilding areas within the development site

Terry Woodley, managing director of development finance at Shawbrook, commented: “It’s positive that steps are being taken to improve biodiversity on development projects.

“Time will tell if the initiative is effective, and the hope will be that it does not negatively impact planning approval processes. 

“Our data shows that a significant number of developers will need to make themselves familiar with the new regulation — and quickly.

“Given the high proportion of costs already being allocated by developers to comply, developers who are unaware risk a substantial impact to their businesses once the regulation is enforced.”