A tiny village less than 50 miles from Palermo and considered one of the most beautiful villages in Italy is selling homes for as little as £2.50.

Sambuca di Sicilia first went viral in 2019 when local authorities announced they would auction off a first batch of abandoned homes for as little as £0.84.

Similar schemes have been launched all over the country to boost the local economy and attract younger generations to rural areas where the population is dwindling.

But the charming little village has been a success story and has now announced a third set of homes in the Saracen quarter will be sold off for the symbolic starting price of €3 (roughly £2.50).

Sambuca has raised over £16 million since the first auction and is hoping its lovely homes and warm community will bring in more buyers.

The houses for sale this year have mostly been abandoned since a huge earthquake struck the provinces of Palermo, Trapani and Agrigento in 1969.

They have since been acquired by local authorities, which would make for a smoother selling process.

The homes on offer are two to three-bedroom properties no bigger than 80 sq metres in the Arab quarter with open spaces, arches and lovely little courtyards with majolica-tiled floors.

The buying price is likely to be higher than the requested £2.50 starting price as they will be sold to the highest bidder but earlier properties have mostly gone for between £4,000 and £8,000.

However, as the houses have been abandoned for decades, buyers can expect to tackle extensive renovation work after signing the contract.

Basic revamps have resulted in investments of at least £25,000. A full makeover could require as much as £211,000.

Buyers in previous years have come from all over the world but Americans have been leading the charge, leading to Sambuca being nicknamed “Little America.”

Sambuca di Sicilia stands on top of a hill at the heart of the Belice Valley, a very fertile area renowned for its local oil and wine sectors.

The village is immersed in the woods of Monte Adranone to the north and Monte Genuardo to the south, by the valleys of the Carboj River and the artificial basin of Lago Arancio to the west.

Sambuca boasts good connections to both Palermo and Agrigento, with the nearest beach only 17 miles away in the stunning town of Sciacca.