The Finance Minister has announced measures aimed at helping homeowners who find themselves in negative equity - owing more than their house is worth.
People whose entitlement to mortgage interest relief would run out in 2010 will now continue to receive it up to the end of 2017.
In a move to encourage people to buy a house over the next three years, qualifying loans taken out before 1 July 2011 will receive mortgage relief at current levels for seven years.
Transitional arrangements will apply to loans taken out in the subsequent 18 months at a reduced level and duration.
Mr Lenihan said full details of his plan to scrap mortgage interest relief entirely by the end of 2017 would be set out in the Finance Bill.
