Atom bank launches ‘Natural Capital’ proposition to help unlock new housing through habitat creation

• The bank has already backed three habitat banks which would support the development of an estimated 2,410 new homes.

Atom bank, one of the UK’s top-rated banks on Trustpilot*, has launched a ‘Natural Capital’ lending proposition which will support development of new housing and infrastructure across the UK.

This follows a successful initial rollout, where Atom bank provided secured funding for the creation of three Biodiversity Net Gain (BNG) habitat banks. Across the three sites, 480 BNG units were created and registered with Natural England. This is enough to deliver the biodiversity net gain required for around 2,410 new homes.

Essential for housebuilding targets

BNG habitat banks are areas of land where habitats are created or enhanced to boost biodiversity. These sites generate BNG units that are sold to developers who, as part of planning applications in England, are typically required to deliver at least a 10% biodiversity net gain. Off-site habitat banks allow developers to meet this obligation when on-site delivery isn’t viable.

Atom bank has provided secured funding to BNG Partnership to finance the transformation of low ecological value arable land on three sites into diverse habitats. A 21-hectare site in Boxworth, Cambridgeshire, a 40-hectare site in Aldwincle, North Northamptonshire and a 20-hectare site in Stockbridge, Hampshire**.

Many of BNG Partnership’s habitat banks have already been established, immediately improving biodiversity and creating measurable improvement to wildlife on site.

England is leading the way in this area by ensuring that there is a net gain to biodiversity associated with most new developments, whether that’s a new road, pipeline, railway line, commercial building or, as in the three projects that Atom has funded to date, new homes to meet the nation’s needs for housing.

While housing has accounted for the majority of demand to date, BNG requirements apply across development generally, 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.

Atom bank leading on BNG innovation

Atom bank has been one of the lenders at the forefront of this emerging market, establishing methods for accurately handling changes in land value and loan-to-value ratios as the arable land is converted into a habitat bank. The bank has also employed flexibility in its loan terms to overcome the fact developers may be reliant on making inconsistent repayments.

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, commented:

“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. Atom bank is already innovating in this new market, deploying the flexibility and creativity for which we have become known in the commercial mortgage space. Now we are launching this proposition to a wider market and welcoming more applications.

“As a leading residential mortgage and SME loan provider, the health of the housing market, new commercial development and the provision of infrastructure to support our economy are essential to our own business, and this is a great opportunity to use our expertise and our willingness to move in line with a more sustainable and exciting future.”

Jason C Wright, Director at BNG Partnership added:

“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 is what has allowed us to create these three sites, providing a strong foundation in a fast-growing industry.

- ENDS -

*Based on 21,489 reviews, as at 26th August 2026

**Each site is registered on the Biodiversity Gain Site Register and secured under a 30-year management and monitoring commitment, enforceable through a Section 106 agreement or conservation covenant.

For Square 1 Media

Paul Hunt, paul@square1media.co.uk 07912 103971

John Fitzsimons, john@square1media.co.uk 0779 367 6977

For Atom

Robbie Steel, robbie.steel@atombank.co.uk 07538 775 701

About Atom bank

Atom bank is one of the UK’s highest rated banks on Trustpilot, and is on a mission to make the experience of borrowing and saving faster, simpler and better value than anyone else. The bank launched operations in April 2016 as the UK’s first app-based bank, and offers award-winning mortgages and savings through its app, alongside secured business lending for small and medium-sized enterprises.

Based in the North East of England with a team of nearly 600 people, Atom is here to ​​change banking for the good, for the better, and for everyone. This means focusing on customers’ needs, delivering better value than the incumbents, providing an exceptional app-based experience and offering award-winning customer support via phone, chat, email and social channels. The bank has some of the best customer service credentials in the UK, having achieved 5-star ratings on both the iOS and Android App Stores, whilst consistently delivering Net Promoter Scores (NPS) in the high 80s.

Based in Newcastle, Atom is an engaged and active member of the North East Community. In 2022 Atom signed a five-year Memorandum of Understanding with Durham University to progress key research and diversity initiatives. The region has one of the highest levels of youth unemployment in the UK and Atom is passionate about addressing the critical digital skills gap and helping develop young people and other groups that are under-represented within the industry. In 2024, Atom purchased 25 acres of newly planted broadleaf woodland in Northumberland to sequester 7000 tonnes of carbon, which will account for all its operational emissions since founding. This forms part of the bank’s pledge to be climate positive from 2035, becoming the first UK bank to make this commitment.

As of November 2021, all employees enjoy a four-day working week, after Atom became the largest company - and only bank - in Britain to introduce the policy for all employees, with no reduction in salary.

The Atom executive team are highly experienced, having built and run some of the most well-respected banks in the UK. CEO Mark Mullen has 30 years’ experience in the sector and was previously CEO at the multi- award-winning telephone and internet bank first direct. The team is supported by a strong non-exec board, chaired by Lee Rochford.