Do you need a Section 106 when buying off-site BNG units?

A question we often get: “If I am buying off-site BNG units, do I need a Section 106?”

The answer is no. Here’s why.

A Section 106 agreement (S106) is a legal contract between a developer and the local planning authority (LPA). A Section 106 (or Conservation Covenant) is only required when developers deliver BNG on-site, ensuring they legally commit to maintaining the biodiversity improvements for 30 years.

If you're the developer, this means:

• You are responsible for creating and maintaining new habitats on your development site.

• You take on long-term monitoring and reporting obligations.

• You are liable if biodiversity targets aren’t met.

But if you buy off-site BNG units through a habitat bank, it works differently.

Why? Because the legal responsibility sits with the habitat provider, not you.

When purchasing off-site units:

• The habitat bank provider enters into the S106 or Conservation Covenant with the local authority. Not the developer.

• They commit to creating and maintaining the biodiversity for 30 years.

• You make a one-time purchase, and your obligation ends there.

This means:

• No long-term liability for habitat success.

• No ongoing reporting or maintenance costs.

• A simpler, faster compliance process.

For many developers, off-site BNG is the cleanest and lowest-risk route to meeting obligations.

If you want to discuss the best approach to managing your BNG obligations, let’s chat.

Fill in the Contact Us form below and you will reach me directly - there are no middle men slowing down the process and adding costs to your BNG units.