Community groups and artists are being encouraged to take over boarded-up shops in a town as a way of regenerating areas hit by the recession.

Hastings is experimenting with temporary 'community leases' that allow local groups to use vacant properties rent-free while landlords seek new businesses to move in permanently.

The town's borough council has already offered small and medium businesses grants of up to £5,000 to take up residence in empty shops in parts of the town.

It also plans to establish a "creative and environmental hub" in an empty shop in the middle of the town centre and hopes to transform several empty shops and boarded-up spaces with art installations and displays during the Coastal Currents arts festival later this month.

This week the Government announced it was giving Hastings an additional £52,632 to expand the scheme to replace boarded-up shops with projects such as art galleries or community learning centres.

The town was one of 57 local authorities given a share of £3million to help prevent their high streets from becoming ghost towns.

A Hastings Borough Council spokeswoman said: "Any money to help us boost our town centres and shopping districts is always very welcome. We know the importance of creating thriving, attractive high streets for shoppers and traders and this money will be well spent."

In April the Government set out a series of measures aimed at making it easier for local groups to take over vacant stores.

They included speeded-up planning procedures, extra powers for local councils to intervene and standard short-term leases.