The derelict Georgian house which inspired the stories of Peter Pan is to be transformed into a national centre for storytelling and children's literature.

The future of the home where JM Barrie played as a child, known as Neverland, in Dumfries, has been secured thanks to £5.3m funding raised by the Peter Pan Moat Brae Trust (PPMBT).

It is hoped the new centre will give local young people the opportunity to take part in a year-round programme of activities and events.

The PPMBT plans to create a visitor attraction, which is expected to welcome 40,000 visitors a year from around the world, boosting the local economy by as much as £1.3m.

The extensive grounds will be reinvented as a Neverland Discovery Garden.

The Heritage Lottery Fund has contributed £1.78m to the project with Creative Scotland giving £680,000 and Dumfries and Galloway Council contributing £500,000,

Joanna Lumley, PPMBT patron, said: "This is tremendous news for Dumfries and a lovely gift to young people everywhere.

"Moat Brae inspired JM Barrie to write one of the best-loved children’s stories of all time and we hope it will give new generations of young people the courage and confidence they need to lead creative lives.

"It’s an awfully big adventure, and this is just the start."

The centre will open in 2018 and offer a place to discover children’s literature and storytelling across the eras, countries and cultures.

Dame Barbara Kelly, PPMBT chairwoman, said: "Moat Brae is a very special place and it’s wonderful that it has been saved and has a new future as a major visitor attraction and a community asset at the heart of Dumfries.

"The transformation of the house and gardens will make an invaluable contribution to the town’s social and economic regeneration. It will also provide brand new opportunities for children and families for fun and discovery.

"We’d like to thank all those who have believed in us and helped us reach this stage, either by making donations or giving their time and energy as volunteers."

JM Barrie played at Moat Brae when he was a pupil at the nearby Dumfries Academy in the 1870s and later described his time in Dumfries as "the happiest days of his life", and the garden as "enchanted land to me, the genesis of that nefarious work, Peter Pan".

PPMBT, which was formed in 2009 to stop the house from being demolished, will carry out a full restoration and create exhibitions about JM Barrie, a specialist education and learning suite and a cafe and shop.

The Neverland Discovery Garden will include a pirate ship, Wendy's house, mermaid's lagoon, and Indian camp and a performance space.

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