Enter a legal agreement for biodiversity net gain

A legal agreement is an obligation to enhance and maintain a habitat. 

Your legal agreement for off-site gains or significant on-site gains must last for at least 30 years.

Who can enter into a legal agreement for BNG 

Land managers 

You docan enter a legal agreement if you: 

• are the landowner 
• have a lease on the land that is at least the same length as the legal agreement 

If your lease is shorter, you’ll need to include the freeholder in your legal agreement. 

Your legal agreement will not replace any previous property rights. 

Developers 

If the off-site gain is secured with a legal agreement by the landowner, the developer does not need to enter a legal agreementagreement. for 

If non-significantthe on-sitedeveloper enhancementsis unlessmaking: 

• off-site gains on their own land that’s outside the development site, they contributemust secure these gains with a legal agreement 
• significant on-site gains, they need to locallyenter importanta specieslegal oragreement ecologicalas networks.the Checklandowner (the LPA might also need to be involved in this legal agreement) 

LPAs and responsible bodies 

LPAs and responsible bodies should: 

• monitor the agreement to make sure the landowner meets their obligations 
• register the planning obligation or conservation covenant with yourthe local planningland authoritycharges (LPAregister 

LPAs) and responsible bodies should not enter into an agreement if you’rethey do not sure. think the landowner will meet their obligations.

On-site gains 

For significant on-site habitat enhancements, youdevelopers must have a legal agreement or planning condition. 

If youdevelopers use a planning condition, this is separate to the condition which requires youthem to achieve 10% BNG.

Your legal agreement for on-site gains must last for at least 30 years from the date you complete the development. 

Developers do not need to enter a legal agreement for non-significant on-site enhancements unless they contribute to locally important species or ecological networks. Check with the local planning authority (LPA) if you’re not sure. 

Off-site gains 

To buy or sell off-site gains, you must have a legal agreement. 

YourThe legal agreement for off-site gains must last for at least 30 years from the date you finish the habitat enhancement. 

How to enter a legal agreement

There are 2 types of legal agreement for BNG: 

• planning obligation (section 106) with an LPA 
• conservation covenant agreement with a responsible body 

As part of the legal agreement, you (or a third party you have sub-contracted to) will need to commit to: 

• creating or enhancing habitats 
• managing the habitats for at least 30 years 

The legal agreement must be in writing and signed by all parties (‘executed as a deed’).

You should get legal advice before entering a legal agreement. You will have to pay for any legal or other costs related to the agreement. 

Planning obligation 

A planning obligation agreement is between landowners and their LPA. The LPA will be responsible for enforcing the agreement. 

Conservation covenant agreement 

A conservation covenant agreement is between landowners and a responsible body. This type of legal agreement gives you more flexibility over who the agreement is with. 

WeThere willis publish a list of responsible bodies soon. 

Who can enter into a legal agreement for BNG 

Land managers 

You can enter a legal agreement if you: 

• are the landowner 
• have a lease on the land that is at least the same length as the legal agreement 

If your lease is shorter, you’ll need to include the freeholder in your legal agreement. 

Your legal agreement will not replace any previous property rights. 

Developers 

If the off-site gain is secured with a legal agreement by the landowner, the developer does not need to enter a legal agreement.  

If the developer is making: 

• off-site gains on their own land that’s outside the development site, they must secure these gains with a legal agreement 
• significant on-site gains, they need to enter a legal agreement as the landowner (the LPA might also need to be involved in this legal agreement) 

LPAs and responsible bodies 

LPAs and responsible bodies should: 

• monitor the agreement to make sure the landowner meets their obligations 
• register the planning obligation or conservation covenant with the local land charges register 

LPAs and responsible bodies should not enter into an agreement if they do not think the landowner will meet their obligations.. 

How long your legal agreement must last 

The legal agreement starts from the date you sign it. 

For off-site BNG, the habitat enhancement may not start right away. The 30 year maintenance period starts when you complete the habitat enhancement work. 

For onsite BNG, the 30 year maintenance period starts when you complete the development.

You need to include how long it will take to create or enhance the habitat (for example, one year). Creating or enhancing only includes capital works.works For(for example, planting trees or digging ponds.ponds).

YouLandowners must maintain the enhanced habitat for at least the length of your agreement.

What to include in your legal agreement 

You’ll need to provide detailed information on your planned biodiversity habitat enhancements for the site (for example, create 2 hectares of neutral grassland in moderate condition).  

You may also include what specific actions you’ll take to achieve the habitat enhancements (for example, sow a seed mix or carry out bi-annual cuts). 

You’ll also need to agree who is responsible for: 

• creating or enhancing the habitats 
• maintaining the habitats 
• monitoring the habitats

You can sub-contract the habitat work to a third party, but the legal agreement sets out who is responsible. You cannot include a subcontractor in the legal agreement. Only the landowner, LPA or responsible body can be responsible.

You can provide a detailed schedule of management and monitoring in a habitat management and monitoring plan (HMMP). 

You can view example legal agreements from the Planning Advisory Service. 

How you’ll allocate habitat enhancements 

You’ll need to: 

• agree how you’ll allocate the enhancements (for example, to one or more developments) 
• decide who will agree the allocation

Find out how to record the allocation of off-site units (land managers). . 

Find out how to record the allocation of off-site units to your development (developers). 

Habitat location 

You’ll need to identify the land where you’ll be creating or enhancing the habitat. 

What you’ll need to agree with the LPA or responsible body 

You’ll need to agree: 

• how you’ll monitor the biodiversity gain site, including a schedule and how to access the land 
• an end date that is at least 30 years from when you complete creating or enhancing the habitat 
• any consent or licences that you need 
• what actions the LPA or responsible body can take if you do not meet your obligations 
• what actions you will take if the habitat enhancement does not go as planned 
• how you will make permitted changes or manage disputes 
• any funding arrangements (for example, for ongoing monitoring) and a payment schedule 
• the biodiversity value of the pre-enhancement habitat (calculated using the statutory biodiversity metric)

If the habitat or enhancement is within the wildlife consultation area of an aerodrome, you must agree that it does not harm aircraft operations.  

You’ll need to agree that the relevant aerodrome: 

• was notified of the proposed agreement 
• had the opportunity to assess for potential hazards to aircraft operations 
• is satisfied with the risk to aviation safety

What happens if you do not meet the terms of the legal agreement 

If you do not maintain the biodiversity gains in your legal agreement, the appropriate body may take enforcement action. 

If you have secured your on-site or off-site gains with a:

• planning condition or planning obligation, the LPA may take enforcement action 
• conservation covenant, the responsible body may take enforcement action 

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