How Much Are BNG Credits Worth? A 2025 Market Snapshot

Introduction

Biodiversity Net Gain (BNG) is reshaping how land and development projects are delivered in England. Since February 2024, most developments must deliver a measurable 10% increase in biodiversity value compared to the pre-development baseline.

That requirement has created a new market: BNG credits. But how much are they worth? The short answer: it depends. Prices vary widely by habitat type, location, and local demand. In this post, we’ll break down current averages, explore the drivers of value, and look at what this means for landowners and developers in 2025 and beyond.

What Are BNG Credits?

BNG credits represent biodiversity “units” created when land is restored, enhanced, or managed to improve its ecological value.

• Calculated using Natural England’s statutory biodiversity metric.

• Linked to a 30-year management agreement to ensure habitats are maintained.

• Tradable assets that developers can purchase when they cannot achieve BNG on their own sites.

What Drives BNG Credit Pricing?

Several key factors shape the value of BNG credits:

1. Habitat Type

   • Low-distinctiveness habitats (e.g. grassland, arable reversion) typically trade at lower values.

   • High-distinctiveness habitats (e.g. wetland, woodland, rare grassland) command a premium.

2. Location & LPA Rules

   • Credits must usually be delivered within the same local planning authority (LPA) or “offset” area.

   • Demand is higher around major growth corridors like the Oxford–Cambridge Arc, Greater London, and large housing zones.

3. Risk & Deliverability

   • Habitats with higher risk of failure may be discounted.

   • Well-managed projects with robust monitoring can attract premium pricing.

4. Market Demand

   • Where multiple developers compete for limited supply, prices rise sharply.

   • Where supply is abundant, pricing softens.

Current Prices in 2025

BNG is still a new market, but data from brokers, early transactions, and industry reports gives us a useful snapshot:

• National average: £20,000–£30,000 per unit

• High-demand regions: £35,000–£40,000+ (South East, Oxford–Cambridge Arc, Greater London fringe)

• Lower-demand regions: £15,000–£20,000 (parts of the North and rural Midlands)

⚡ Industry Stat: Defra estimates the BNG market is already worth £135m–£274m annually, with potential to reach £3bn by 2035.

Regional Variations

• South East & London Fringe
  High concentration of development, tight land supply, and strict LPAs mean credit prices are at the upper end of the range.

• Midlands (West & East)
  Strong housebuilding activity, but patchier supply. Prices are mid-range (£22k–£28k).

• North of England
  Some areas still have limited demand, keeping prices lower for now. Expect increases as more projects trigger BNG requirements.

• South West
  Growing interest in habitat banks linked to infrastructure corridors, especially around Bristol and Exeter.

Case Example: Landowner Scenario

A 40-acre arable farm in the Midlands is converted into species-rich grassland.

• Baseline habitat value: 40 biodiversity units

• Post-enhancement value: 80 biodiversity units

• Net uplift: 40 credits

If credits sell at £25,000 each, that represents £1 million gross value over a 30-year agreement

Case Example: Developer Scenario

A 200-home scheme in Oxfordshire requires 10% BNG uplift. Onsite landscaping provides 70% of the requirement, but the scheme still needs 25 offsite credits.

At £35,000 per unit, the developer secures credits worth £875,000 to satisfy planning conditions and keep the project moving.

What This Means for Landowners

BNG credits represent a new asset class for landowners.

• Long-term, inflation-linked income secured via 30-year agreements.

• Diversifies revenue away from agriculture or leasing alone.

• Enhances the environmental value of estates and farmland.

The key is feasibility: not every parcel of land is suitable. That’s where working with a broker like TEG ensures you only commit land where demand and pricing align.

What This Means for Developers

For developers, BNG credits are now a mandatory cost of doing business.

• Securing credits early prevents delays in planning approval.

• Prices can vary dramatically between LPAs — understanding local supply is critical.

• Brokers provide off-market access and save time navigating multiple landowners.

Market Outlook

• Short term (2025–2027): Strong pricing, limited supply, high competition around growth zones.

• Medium term (2028–2030): More habitat banks registered, market stabilises, credits become easier to source.

• Long term (2030–2035): Forecast market size £3bn+, with over 90,000 units in circulation.

Early movers — both landowners and developers — stand to benefit most before the market matures.

Key Takeaways

• BNG credits currently trade between £20k–£30k, with premiums in high-demand regions.

• Habitat type, location, and deliverability are the main price drivers.

• Landowners can unlock long-term income; developers must plan and budget early.

• The market is young but forecast to grow rapidly, making early action an advantage.

Final CTA

Whether you’re a landowner considering habitat creation or a developer needing credits, Taylor Edwards Group helps you secure the right outcome.

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