Budget confirms BNG exemption for brownfield residential development
Labour’s 2026 Autumn Budget confirms that residential development on brownfield land, on sites up to 1.5 hectares in England will be exempt from complying with the Biodiversity Net Gain (“BNG”) regime first introduced by the Environment Act 2021.
An introduction of this type of exemption was consulted upon earlier in the year, at that time looking at site thresholds of between 0.5 and 2.5 hectares. With a formal consultation response still awaited, the ‘take effect’ date for this exemption, as well as the scope and nature of the types of developments which will benefit from the exemption remain to be confirmed. This announcement follows a suite of further amends to the BNG exemptions introduced in August 2026.
Developers looking to develop residential property on brownfield land will need to wait for the consultation response (to be published “in due course”) to determine the applicability of this exemption to proposed schemes. It is also likely to be a relevant factor in determining the viability of potential schemes, particularly for SME housebuilders.
Subcribe to news and viewsResidential brownfield developments on sites up to 1.5 hectares in England are being exempted from BNG requirements, reducing costs and ensuring the government’s ‘brownfield-first’ ambitions directly support the delivery of more homes.
https://assets.publishing.service.gov.uk/media/6ae20b85460c1346f7be784e/E03668986_HMT_Budget_2026_ELAY__2_.pdf
