Leaseholders fighting to reform the controversial system of home ownership have condemned new Government proposals as half-hearted.

Newly-published plans to modernise the system simply formalise many of the existing faults, according to the Brighton, Hove and District Leaseholders' Association.

Campaigners say there could be thousands more problems every year because ministers have shied away from outlawing leaseholding altogether.

Shula Rich, who chairs the association, said: "They promised it would sort out the problem root-and-branch and they are actually only sorting out the foliage.

"We see it as polishing the bars of our cages, not giving us real freedom."

The proposals allow flat owners to form commonhold associations to manage new developments.

Existing leaseholders would be able to convert to commonhold but only if every tenant in a block votes to change. The proposals, expected to be published as a draft Bill later in the year, include:

A new right to manage, with the abolition of the "residency test" and
requirements that at least two-thirds of leaseholders opt to take over from the freeholder.

Measures to make it easier for leaseholders to buy the freehold of their flats.

Challenging service charges - including those for improvements, a major
concern among council leaseholders - would be made easier.

Campaigners say freeholders would still influence a property by sitting on any management committee, while the cost of buying a freehold would not be controlled.

An estimated 25,000 leaseholders live in Brighton and Hove.

Pavilion MP David Lepper singled out the right for existing leaseholders to choose commonhold and recognition of the problems faced by council leaseholders.

He said: "I believe that it will be a significant step forward, but I am aware there are some leaseholders' organisations that will still feel the Government should go further."