Croydon Council is to press ahead with a controversial licensing scheme designed to clamp down on rogue landlords.

But it has slashed the fee it will charge private landlords to sign up after fears it would lead to knock-on rent rises for tenants.

The council launched a consultation on the scheme, a key pledge in its local election manifesto last year, in September. 

It initially planned to charge £200 a year for the licences, which will be mandatory for each property a private landlord rents out. 

Under revised plans expected to be confirmed by the council cabinet on Monday night, landlords will instead pay £750 for five years or £350 if they register early.

The reduction comes following an outcry from letting agents and landlords, who dubbed the charge a "tenant tax" and claimed it would lead to higher rents.

But the council believes the licences, which will require every private landlord in the borough to prove they are "fit and proper" for the role, will cut down on crime and anti-social behaviour spawned by poor property management. 

Coun Alison Butler, the council’s cabinet member for homes and regeneration, said: "This licensing scheme is about making Croydon a better place to rent, and I know many residents support our proposals because badly-kept properties blight our streets.

"Anti-social behaviour is everyone’s problem – but too often we find a minority of private landlords whose failure to act damages communities.

"This licence will give peace of mind to responsible tenants and landlords looking to thrive in Croydon - it’s the dodgy landlords who should be worried."

But landlords have argued the scheme will unfairly penalise those who manage properties well and warned the council could face legal action. 

Richard Lambert, chief executive of the National Landlords Association, said: "Croydon’s problems are based on anti-social behaviour, something which landlords have no control over other than by eviction, which just moves the problem on. 

"If Croydon Council is serious about tackling poor property standards and anti-social behaviour, it should first look to the extensive existing legal powers it already has to deal effectively with the issues."

The association's Croydon members met in October to discuss applying for a judicial review. 

According to a council report, only a quarter of landlords and letting agents who replied to its consultation believed a £350 charge would be "totally or fairly reasonable".

But 62 per cent of all respondents and 68 per cent of private sector tenants said it was fair.

The council extended its consultation by ten weeks in December after a High Court blocked Enfield Council's attempt to introduce a similar licensing scheme.