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Thousands of people lined Plymouth Hoe to welcome home the yacht Gipsy Moth IV as she finished her second round-the-world voyage - 40 years to the day after Sir Francis Chichester completed his historic solo circumnavigation.

Gipsy Moth IV was escorted across Plymouth Sound by a flotilla of small craft and flanked by the Plymouth lifeboat and a fire tug shooting water jets into the air. 

Some 250,000 people lined the waterfront to cheer him home, and he was knighted for his achievement in becoming the first person to complete the first true solo circumnavigation.

He made just one stop - an emergency stay in Sydney, Australia, for repairs to the 53ft yacht.

Sir Francis described Gipsy Moth IV as cantankerous and difficult, and he never sailed in her again. Instead, she was allowed to rot in dry dock at Greenwich until, in 1984, the UK Sailing Academy (UKSA) saved her.

She underwent £650,000 of repairs in readiness for another round-the-world voyage.

This time the yacht was crewed by teams of disadvantaged young people on its repeat 30,000-mile (48,300km) odyssey.

Among the crowds in Plymouth to welcome the ketch home at West Hoe pier was Giles Chichester - son of Sir Francis.

"It's wonderful to be here in Plymouth to see Gipsy Moth return from her latest circumnavigation," said Giles.

"The contrast with her coming in this afternoon and the poor old Cutty Sark and the fate she suffered, is marked.  

"I feel I have a duty to my mother who was concerned that my father's memory might not carry on.

"I think she'd be very pleased by all the effort and all the co-operation that has gone into putting Gipsy Moth IV to sea again.

"And I also think it's great to see all these young people enjoy a life changing experience sailing part of the way around the world in Gipsy Moth.

"It's brought my father and his great adventure to a new generation, which is wonderful."

A fly-over by the original Gypsy Moth bi-plane which met Sir Francis Chichester in 1967 was cancelled because of poor weather conditions prior to the arrival of the yacht.

Her latest journey started in Plymouth in September 2005, and it has provided a unique opportunity for almost 90 young people to sail in one of the world's most famous yachts.

Over 32 legs, the young people - three at a time - have been joined by a skipper, mate, and crew leader.

It was a real homecoming for two of the young people who sailed into Plymouth Sound on board Gipsy Moth. Grant McCabe is from Plymouth and Kerry Prideaux is from Lynton.

"It was very rough and there were points when I just wanted to give up," said Grant. "But now I look back on it, overall it has been a life changing experience.

"I don't know how Chichester did it. We only just managed to do it with six people on board. He was a brave man and must have been such a strong character to do that."

Despite one accident when Gipsy Moth IV was holed on a reef in the Pacific, the voyage has been a huge success.

The accident meant the yacht had to put in for repairs in New Zealand, and she was then shipped to Sydney, Australia, to be met by the Princess Royal.

Now safely back in the UK, Gipsy Moth IV is ready for another refit.  

"She's getting quite tired," said Anna Symcox, from UKSA. "She's going to have another refit now she's back.

"She's not the easiest boat to sail, but everyone has fallen in love with her," said Anna.

"It's given the young people such an amazing opportunity, for some it has been a life-changing opportunity.

"They have really developed and come out of themselves."

So what's next for Chichester's famous little boat?

Anna says Gipsy Moth IV won't be left to rot for a second time: "She'll be based in Cowes, Isle of Wight, and she will continue to sail.

"To pay for her up-keep, there will be the opportunity for people to charter her for trips - for one day, or weekends, or for five days. They can live out their dreams."

Up to five people can take her out, and they'll have an experienced skipper.

"She's going to live on this time, and not rot away," said Anna.