Thousands of Oxford householders look like escaping having to pay to park in their own street for a year.

Oxfordshire County Council's decision to charge residents £40-a-year for parking permits sparked angry protests. And it threatened a costly legal battle with Oxford City Council, which opposed the scheme.

With the city council carrying out its threat not to do the county council's "dirty work" by collecting unpopular charges from resentful homeowners, the county council has been faced with creating its own parking payments shop in its Speedwell Street offices.

The shop is unlikely to be finished until an as yet unspecified date in the summer.

The county council has confirmed that all residents who are due to renew their parking permits before midsummer will escape charges for a year.

Residents whose permits are due for renewal in late summer, however, will find themselves having to pay for parking permits, with the cost ranging from £40 for one vehicle to £120 for four.

Steve Smith, the council's Network Co-ordinator, said: "The city council officially informed us late last year that it no longer wished to run the parking payments shop.

"Our plan was always to have our own parking payments shop, in our Speedwell Street offices, ready for mid-summer. That is still our aim.

"Permits are renewed annually. A large number are due for renewal prior to mid-summer and so effectively will be charge-free for another year."

Mr Smith said the council was pressing ahead with reviews of the city's controlled parking zones.

Headington city councillor Stephen Tall said: "We are all keeping our fingers crossed in Headington that a county council cock-up will give residents a year-long amnesty.

"County Hall had earlier said setting up their own parking shop would be easy. I think they are finding it more difficult than they thought.

"I'm not sure how it will affect different areas in the city. But hopefully many will enjoy a year's relief from charges."

Meanwhile, residents in north Oxford have called on Oxford City Council to arrange a referendum about the imposition of a North Summertown controlled parking zone.

Residents in Sunnymead have collected more than 150 signatures for a petition against the parking scheme.

Ian Hudspeth, the county cabinet member for transport implementation, said it was not known when the first residents would have to pay.

He said: "Before we are able to charge, we have to get the right procedures and traffic order regulations in place. It should be said that residents themselves want residents' parking zones."

Controlled parking zones were on Thursday extended to homes in Marston South. Zones now cover Headington, Summertown and Botley.