Copy article

Atom Bank launches new Natural Capital product – what do you think?

ended 29. August 2026

Atom Bank has launched a new Natural Capital product, giving borrowers access to specialist funding to buy or refinance land for Biodiversity Net Gain (BNG) habitat creation.

The lender said most developers in England now need to deliver a mandatory minimum 10% biodiversity uplift for their projects. This uplift is essential for delivering new housing, yet it often cannot be achieved on the development site itself, creating a bottleneck for new homes.

Demand for off-site BNG units in England is growing rapidly to overcome this as a result. By funding the creation of these thriving habitat banks, Atom Bank says it supports the essential off-site solutions that allow developers to build the houses the country needs.

Criteria: 

Security location: England only. Statutory Biodiversity Net Gain requirements limit our eligible security strictly to English sites (general BNG eligibility and requirements apply). 
Borrower types: Limited Companies and LLPs only (Sole Traders and Partnerships are not eligible).
Scheme eligibility: All of our BNG lending must meet Growth Guarantee Scheme (GGS) eligibility criteria, which we will assess upon application. 
Experience: Principals must demonstrate relevant experience in land management or environmental projects. No minimum trading history required.
Maximum LTV: Up to 65% of the original security value, subject to credit quality and assessment of your application.
Loan size: £100,000-£2,000,000
Loan structure: The loan is available for a term of 1 to 6 years and requires both ongoing interest payments and capital repayments structured as follows: 
Interest payments: Interest payable either monthly or quarterly at a variable interest rate.
Capital repayments: Quarterly capital repayments of 25% of the gross income from any BNG unit sales in that quarter. 
Final bullet repayment: Any outstanding balance must be repaid in full at the end of the term.
Serviceability: Assessed on historical performance or 5-year cash flow projections supported by a robust business plan and sales pipeline. 

  • Do you see the overall scheme itself as positive or is this another lending gimmick?
  • In practice how much of this will be accessible when part of their eligibility criteria is “Principals must demonstrate relevant experience in land management or environmental projects. No minimum trading history required.”
  • Will this see an increase in prices for this type of land – is that a good or bad thing if people are securing more biodiverse land?
  • Would be interesting to hear from planning experts on the viability of support for these BNG units.
  • Does this potentially leave a problem at the end of the 6 year term in terms of refinance – i.e. lack of options. Is the can just being kicked down the road with potential problems in 6 years?

Responses by the end of the day.

4 responses from the Newspage community

Copy all

Copy

Editor
Adam StilesVerified
Managing Director at Helix Financial Partners
Anything that can support biodiversity and development should be celebrated, but as always the devil is in the detail. This is a unique proposition but helping to support the financing of the unintended consequences of planning rules will always find a niche. My worry is that by restricting this to developers with experience in land management or environmental projects will hugely restrict the pool of developers eligible to borrow money for this. Perhaps Atom should consider offering a tie in with a land management or environmental project agency to support this criteria and thus making far more developers eligible. If not I do fear this is very much a gimmick that very few can access.

With a lack of alternative financing developers do need to make sure they have more than one exit if Atom expect to be repaid by the end of 6 years.

The demand for these sites due to these planning rules will of course increase and as such land prices for these types of sites will increase.
Copy

Editor
Tony SanchezVerified
Founder at Bridging Loan Directory
From a Bridging Loan Directory perspective, this appears to address a genuine funding gap rather than being a gimmick. The experience requirement seems reasonable because borrowers are not simply acquiring land: they must create or enhance habitat and manage it for at least 30 years.

The key lending question is the exit. Atom’s loan lasts up to six years and is partly repaid from BNG unit sales, but demand, pricing and the timing of those sales may be difficult to predict. Any outstanding balance must then be repaid, potentially against land carrying long-term legal obligations.

The test will be how Atom values that land, assesses the sales pipeline and handles cases where units sell more slowly than expected. The Growth Guarantee Scheme protects part of the lender’s exposure, but borrowers remain liable for the full debt.
Copy

Editor
Harvey DhillonVerified
Founder & CEO at Zmartly
The refinance risk is built into the repayment terms, not just sitting at the end of them. The balance only falls by 25% of the gross money from unit sales, before costs. Clearing the debt that way would need gross sales of four times the loan, and interest is paid on top. A lump sum at the end is the design, not an accident. Those repayments only fall short if the units haven't sold, or haven't fetched enough, and that is exactly when a lender is likely to price the ones left over cheaply. So a backup exit that also rests on unit sales isn't a backup. The landowner is then asking a new lender to lend against land tied to habitat management for decades after the loan has gone. Yes, the can is being kicked down the road. Build the exit in year two, not year six.
Copy

Editor
Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
This is not a gimmick. It is lending finally catching up with a planning rule that is already reshaping development.

My concern is the mismatch in timeframes. Atom will lend for up to six years, but BNG habitat can carry a 30-year management obligation. If the refinance market has not matured by year six, borrowers could discover they financed a long-term environmental asset with short-term money.

The experience requirement is sensible because this is not passive land ownership. You are effectively building and operating an environmental asset, with delivery targets, sales assumptions and long-term obligations.

Could suitable land rise in value? Absolutely. Mandatory 10% BNG creates real demand for off-site units where developers cannot deliver enough biodiversity on-site.

I like the innovation. But the exit needs to be as credible as the habitat. Otherwise we solve today’s planning bottleneck and manufacture a refinancing problem for 2032.