Location premium (PLC)
A location premium, or preferential location charge, is an extra percentage an authority adds for a plot with a better position — a corner, a park frontage, or a wide road. It is charged on the land value and is separate from the bid. At MDA and LDA each of the three attracts 5%, capped at 12% where all three apply — and that cap covers the location charges only, not the freehold charge computed on top of them.
Worth knowing
- A PLC is a percentage of the land value, so it grows with the bid rather than staying fixed.
- Not every authority charges one: RIICO charges no corner premium at all.
Questions people ask
What is Location premium in a government plot auction?
A location premium, or preferential location charge, is an extra percentage an authority adds for a plot with a better position — a corner, a park frontage, or a wide road. It is charged on the land value and is separate from the bid. At MDA and LDA each of the three attracts 5%, capped at 12% where all three apply — and that cap covers the location charges only, not the freehold charge computed on top of them.
What should a bidder watch for with location premium?
A PLC is a percentage of the land value, so it grows with the bid rather than staying fixed.
Anything else about location premium?
Not every authority charges one: RIICO charges no corner premium at all.