Can Resident Management Companies Survive Biodiversity Net Gain?

With new legislation in November, developments will incorporate a mandatory 30-year biodiversity management covenant. With a long-term legal requirement that could see developers penalised for failures, it is important to consider suitable management.

There are two management options typically used – 1) an adopting organisation such as Meadfleet takes full management responsibility for areas in perpetuity 2) a residents management company (RMC), where liability falls to homeowner directors and S106 signatories.

The question is, which model is best to deliver BNG successfully?

It is worth remembering that there are already many aspects of open space management that require specialist expertise including play areas, woodlands, and SuDS features. With members of the public accessing open spaces, risks must be carefully managed. With the addition of Biodiversity Net Gain, it is vital that open spaces are managed by experienced bodies with the expertise to oversee the requirements both for biodiversity and health and safety over the long term.

The RMC model compels (sometimes unwilling) homeowners to become directors, legally responsible for the management of the open space and associated liabilities.

If directors no longer have the time or energy for the role or if they move house, efforts can languish. Furthermore, this role is likely to be outside their level of expertise and there is a risk that subjectivity creeps into the decision-making process. Plus, directors are burdened with legal and administrative issues including enforcement action which could see them personally liable.

The reasons above cast doubt as to whether the resident management model could ensure the successful delivery of BNG legislation.

Meadfleet’s lifetime management model with in-house expertise to manage all aspects of open space features objectively and responsibly over the long-term will ensure a developer’s legacy is protected and risks are minimised. Developers should look for organisations with a proven reputation for excellence and expertise and the in-house specialist knowledge required. This approach also helps reduce customer costs and provides clear accountability.

Open space management companies should be experts in managing open spaces for biodiversity and engaging customers in its benefits. Meadfleet’s in-house ecologists are ready to oversee the adaptive management, monitoring, and surveying requirements of BNG and provide support to developers during the process to ensure a seamless transition through the new regulations.

Contact Meadfleet to learn more