Delays caused by eco-rules – specifically Biodiversity Net Gain requirements – threaten house building targets as councils employ hundreds of consultants to meet needs.
The Home Builders Federation says that in particular small and medium sized enterprise (SME) home builders are facing huge challenges to implement Biodiversity Net Gain (BNG) environmental requirements.
A lack of expertise and capacity in Local Authority planning departments is being blamed in part for BNG-related delays.
Federation research, based on a survey of home builders and a Freedom of Information request of local authorities, finds that 98% of 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.
BNG was introduced via new legislation in 2019 and ensures that new development enhance wildlife habitats and ecology, requiring developers to achieve at least a 10% net gain in biodiversity.
Since the requirement was introduced in February 2024, it has proven new homes and environmental benefits can be delivered together.
A lack of capacity in council planning departments has long been a major frustration for industry. Resultant delays to the processing of planning applications prevent builders from getting onto sites to start work, delaying delivery.
Some 94% of respondents to HBF’s survey said they have experienced delays in processing planning applications due to BNG whilst 90% experienced delays specifically due to insufficient BNG expertise or resources within local authorities.
The research found nearly 40% of local authorities lack access to in-house ecological expertise, and 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 and 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.
Meanwhile the number of SME builders has dropped dramatically in recent decades, with the federation blaming ever more complex and bureaucratic planning system being one of the main reasons. SME home builders face additional difficulties in navigating the costly and lengthy process, and many are stopping house building as a result.
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 LPAs 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.
Neil Jefferson, Chief Executive at the Home Builders Federation, says: “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.”
