Stamp duty cut will benefit UK’s wealthier and raise inflation, say experts

UK average house prices increased by 15.5% in the year to July. Photograph: Yui Mok/PA

Cuts to stamp duty will hurt first-time buyers and stoke an inflationary bubble in the property market as house prices rise at the fastest rate for almost 20 years, the government has been warned.

In the latest report detailing the tax cuts favoured by Liz Truss, the Times said Kwasi Kwarteng, the chancellor, was preparing to launch radical cuts to stamp duty as the “rabbit out of the hat” measure in his mini-budget to the House of Commons on Friday.