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Back in December 2025, the Government launched a consultation designed to bring life back into the planning system. For those who have been around long enough, these flash in the pan initiatives aren’t worth the paper they are written on. The Government is forever talking about ways to help the housing industry get off its knees, which is ironic given the Government is largely the reason for the industry suffering. However, with this latest consultation, it is looking to create a clearer, more rules-based planning system, where development that meets requirements can move forward with greater certainty.

One of the key changes could be to Biodiversity Net Gain (BNG), which was introduced to ensure new developments consider their impact on nature at the outset. Initial signs since its mandatory introduction in 2024 have been positive from an ecological perspective, with BNG preventing habitat loss from residential development equivalent to 6,000 to 10,000 hectares each year in England. However, when you drill down into the detail, although it might be working for the larger schemes, it is proving to be a real issue for the small and medium-sized enterprise (SME) developers. They feel that the legislation is causing delays whilst further squeezing the financials of those who are already suffering from exponential build cost inflation and a fall in demand.  

The proposed changes being consulted on are to BNG for sites of under 0.2 hectares (0.49 acres) which may become exempt from BNG requirements. This will help the SMEs with reduced costs from a planning and build perspective, whilst saving the local planning authorities time and money. There are also whispers that brownfield sites might benefit from BNG exemptions, however the devil will be in the detail. In terms of timings, we hope to see the consultee responses by Q2/3 of 2026, and changes could be implemented by the summer of this year.

Back in November of last year, the housing industry bemoaned Rachel Reeves’ Autumn Budget as it included tax hikes whilst offering next to nothing to boost the economy and housing industry. Since then, just as inflation and interest rates were starting to come down, Donald Trump had other ideas. This has led to a hike in oil prices, which causes the public to tighten their belts further. In addition to this, mortgage rates have risen, which will frustrate existing and future homeowners. Changes to BNG could give the industry a sliver of hope, however we will wait to see whether the Government takes action.

For further information or to discuss the potential of your site for development, please contact Tristan.