Natural Capital and Biodiversity

Natural capital and biodiversity net gain (BNG) offer farmers and landowners new opportunities to secure additional income.

Harnessing precious resources for farmers and landowners - expert legal support

What is natural capital? – new incomes streams for land

Significant changes in rural policy and land management have brought both challenges and new opportunities for farmers and landowners. Natural capital refers to the environmental value of the land — such as wildlife habitats, moorland for flood and water management, reed beds for natural sewage treatment, and carbon capture through wetlands and trees.

By understanding and enhancing the natural capital of their land, landowners can access emerging markets and income streams linked to environmental services.

What is biodiversity net gain? – making the most of natural capital

Biodiversity net gain (BNG) is an increase in biodiversity that development sites are legally bound to provide. With the rules now extended to include smaller sites and major infrastructure projects in 2025, many developers are seeking off-site solutions to meet their obligations.

This creates an opportunity for landowners to generate income by using their land to deliver biodiversity enhancements, effectively monetising their natural capital while supporting national environmental goals.

How can we help? – specialist legal advice for farmers and landowners

Our dedicated agricultural team has extensive experience in advising on farm diversification and environmental land use agreements. We can guide you through:

  • Opportunities to generate new income from BNG and other schemes
  • The legal and practical implications of committing land for 30 years or more
  • How these agreements interact with existing tenancies or development contracts
  • The tax implications for you and your family, now and for future generations

Whether you’re exploring BNG, carbon credits, or other land-based opportunities, we’re here to help you make informed, strategic decisions.

The team at Tees are very good. They have the diversity in knowledge that enable them to understand where the client is coming from. They operate with transparency and fairness.

Our expertise

Our natural capital and biodiversity solicitors can support and advise you on a range of issues including:

  • Drafting and negotiating long term farm business tenancies (FBTs)
  • Habitat bank providers
  • Dealing with Section 106 agreements 
  • Drafting and agreeing conservation covenants
  • Getting approval from lenders
  • Advice on business structures refinancing 
  • Advice to landlords and tenants on whether tenancies allow long-term schemes
  • Advice on the effect of existing or proposed overage agreements  

Legal and financial advice

Tees is a full-service top-tier Legal 500 firm, so we can support you with any legal matters connected with natural capital and biodiversity. We have expert lawyers in: estate management, commercial and agricultural property, renewable energy, corporate law, dispute resolution, regulatory law, private client and financial advice.

We also have in-house independent financial advisers who work closely with our lawyers to deliver all the advice you need for your business, and for investment for the future.

Our independent financial advisers are regulated and authorised by the Financial Conduct Authority, which means we are accountable for all the advice that we give.

We're here to help

If you’d like to meet one of our experts for a confidential, no obligation chat, please get in touch.

We have offices across Cambridgeshire, Essex and Hertfordshire, but we can help you wherever you are in England and Wales

The financial services provided on this page are by Tees Financial Limited, authorised and regulated by the Financial Conduct Authority. Registered number 211314.

Our legal services are regulated by the Solicitors Regulation Authority.

 

Key people

Jane Doe
Partner
Jane Doe
Partner
Jane Doe
Partner

News and insights

Frequently asked questions

The answers to many of your questions can be found here, please get in touch for further information.

I have been told my property has development potential. What do I do?

If you’ve been contacted by a developer or a land promoter regarding a potential development to your property, you may wish to consider granting an option agreement or a promotion agreement. An option agreement is made between the landowner and the developer, where it is intended that the developer will apply for planning permission and requires an option to buy the property. A land promotion agreement is used where a developer agrees to apply for planning permission and will market the property for sale on the open market once planning permission has been obtained. This is usually in return for a proportion of the net sale proceeds. The law on this is very complex and you will need specialist advice. 

Contact us today

If you’d like to meet one of our experts for a confidential, no obligation chat, please get in touch.

Telephone