First three projects could support 2,410 new homes
Atom bank has launched a ‘Natural Capital’ lending proposition after an initial rollout provided secured funding for the creation of three Biodiversity Net Gain (BNG) habitat banks.
BNG habitat banks are areas of land where habitats are created or enhanced to boost biodiversity, generating BNG units that are sold to developers to enable them to meet their minimum 10% biodiversity obligations under English planning laws.
The first three sites created 480 BNG units, which have been registered with Natural England and provide enough biodiversity net gain for around 2,410 new homes.
Transforming low ecological value arable land
The funding has been provided to BNG Partnership to transform low ecological value arable land on three sites. These include a 21-hectare site in Boxworth, Cambridgeshire; a 40-hectare site in Aldwincle, North Northamptonshire; and a 20-hectare site in Stockbridge, Hampshire.
BNG requirements apply across development generally, beyond only housing, including commercial, industrial and logistics schemes, solar and other renewables, and minerals and waste. From 2 November 2026, the requirement extends to nationally significant infrastructure projects (NSIP), with a minimum 10% uplift applying across all NSIP types.
Natural capital loans are available for the purchase or refinance of land in England with the intention of creating BNG units and are available to LLPs or limited companies only. Loans are available between £100,000 and £2 million and up to a maximum of 65% LTV against the original land value.
Edward Twiddy, director of ESG at Atom bank, said: “Supporting the creation of BNG habitat banks is essential for the future of the housing sector. These projects will help unlock new homes as the Government seeks to hit its ambitious housing and infrastructure targets. Now we are launching this proposition to a wider market and welcoming more applications.”
Jason C Wright, director at BNG Partnership, said: “Buying land outright to create a habitat bank is the most demanding way to do it, but also the most secure. It means committing capital to the freehold years before a single unit is sold, with the benefit that we control delivery for the full 30 years. That certainty and transparency is what developers and planning authorities want to see.
“It was vital to find a financial partner with the foresight and commitment needed to build long-term natural capital. Conventional agricultural lending does not cope well with land whose value and use are both changing as habitat is established, and few lenders have been willing to work on that basis. Atom’s financial insight and dedication to the environment are what have allowed us to create these three sites, providing a strong foundation in a fast-growing industry.”
