I would think that, like many of the films that were on the Video Nasties list that remain unreleased in the UK, the only reason it isn't available over here still is just that the owner doesn't see it as worthwhile to release it. Would they make much money from releasing this one on DVD? I doubt it, not enough for it to be worth the costs of submitting it to the BBFC, manufacturing the DVD, and advertising etc. I'm not even sure how you would go about marketing this film, who would its target audience be in this day and age?
No big deal for the BBFC I'd say, just not financially viable for the rights holder.
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