Atom bank launches £2M green loans to unlock UK housing
What's the deal? Atom bank has launched Natural Capital, a lending product financing Biodiversity Net Gain (BNG) habitat banks across England. Loans run from £100,000 to £2 million, with a maximum loan-to-value of 65% against the original land value. The product targets LLPs and limited companies buying or refinancing land to create BNG units.
Why now? Under English planning laws, most new developments must deliver at least a 10% biodiversity net gain. When on-site delivery is not viable, developers buy units from off-site habitat banks to meet their legal obligations.
What's the endgame? The launch follows a pilot in which Atom funded three habitat banks: a 21-hectare plot in Boxworth, Cambridgeshire; a 40-hectare site in Aldwincle, North Northamptonshire; and a 20-hectare site in Stockbridge, Hampshire. Together they generated 480 BNG units registered with Natural EnglandDealroom has a profile for this one. Try Dealroom → — enough offsets for roughly 2,410 new homes.
The loans are structured for the cash flow challenges of habitat creation, where repayment schedules can be inconsistent and land values shift as arable sites become ecological assets.
What could go wrong? The model rests on lending against land whose value and use are both changing. "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," said Jason C Wright, director at BNG Partnership.
The signal: Demand for BNG units looks set to grow. From November 2, 2026, the requirement will extend to Nationally Significant Infrastructure Projects, including railways and pipelines. Atom, a branch-free digital lender focused on mortgages, savings, and SME lending, is betting a fintech approach can serve a market that high-street banks have largely avoided.
