Grants of up to €15,000 (£12,700) are being offered by the Sardinian government as an incentive for people who are thinking about relocating to the idyllic Italian island.

Officials have set aside £38 million for the initiative, which aims to encourage people to visit rural areas of Italy and boost business in small towns. As a result of younger generations moving to big cities for employment, the area is experiencing a decline in population and a shrinking economy.

Sardinian President Christian Solinas said in a statement: "Thanks to these contributions to [homebuyers'] first houses, [Sardinia] becomes fertile ground for those who will move there or decide to build a family."

"There can be no growth without a real enhancement of the territories, of the interior and most disadvantaged areas, which must be passed through new policies for their repopulation."

"We have created the conditions for young people to decide to stay and develop the economic fabric of the most fragile territories."

The attractive grants come as part of a nationwide scheme designed to encourage people to buy ageing houses, renovate them and start new businesses to rejuvenate small communities in the Italian countryside. Sardinia is the second largest island in the Mediterranean and has over 1,000 miles of sandy beaches, picturesque port towns, and bronze-age ruins built as far back as 1,500 BC.