Landlords have launched a legal challenge to controversial council plans to charge for licences to manage properties.

Croydon Council is facing a judicial review of its scheme, designed to crack down on rogue landlords, after a group of businessmen filed papers with the High Court. 

Councillors approved the licences, which are due to be introduced in October and will cost up to £750 for five years, in March following a three-month public consultation. 

They believe 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. 

It is understood a group of landlords, operating as the Croydon Property Forum, applied early in June for a judicial review of the decision and will argue the consultation process was flawed. 

Gavin Dick, local authority policy officer at the National Landlords Association, which has been advising the Croydon landlords, said: "I don't think Croydon has an endemic anti-social behaviour problem across the entire borough and I don't think the council has demonstrated that being linked to the private rented sector.

"They have not answered that fundamental question."

A judge is expected to give rule whether there is an initial case for a judicial review by mid-July.

Enfield Council's decision to introduce a similar licensing scheme was quashed by the High Court in December last year following a judicial review triggered by a landlord's challenge.

Any ruling that Croydon's consultation was invalid could permanently kill off plans for each of the borough's landlords to be licensed because the Government in April introduced legislation to ban blanket schemes.

Only 20 per cent of the borough could be covered by any new scheme.

A second group of landlords are understood to be contemplating a class-action lawsuit in a bid to recover licence fees if the judicial review finds in favour of the council.

Under the current plans, landlords would be required to pay £750 to be licensed for five years or £350 if they register before October 1. 

Those who breach their licences face fines of up to £20,000 or prosecution.

Critics have dubbed the licences a "tenant tax", predicting the cost will be passed on to occupants.

A council spokesman said: "We are confident that our landlord licensing scheme is robust, lawful and will raise housing standards across the borough, and we’ll continue preparing to launch this scheme from October 1."