The think tank suggested increasing the
stamp duty surcharge on second homes and investment properties from 3% to 5% to raise PS790 million per annum.
"The new prime minister should be bold: take all but the most expensive properties out of
stamp duty and pay for it with fairer taxes on empty, foreign or expensive properties.
Transaction numbers remained 5.4 per cent down on the same two months a year earlier - which were also characterised by a rush to beat the previous increase in
stamp duty.
Homeowners in London who bought their first property in 1999 will now, on average, have spent GBP38,000 in
Stamp Duty over their lifetime.
The effect of the changes is that anyone buying a property for less than PS937,500 will pay less
stamp duty or the same as they would under the old regime.
"High
stamp duty rates stop young people buying a home and starting a family, discourage elderly people from downsizing and make it harder to move to a new place for a new job."
Recent research revealed around four in 10 first-time buyers benefited from the
stamp duty concession during the two years it was in place.
Barratt has a range of new homes at Meadow Rise, Stockton and Mandale Park, Thornaby where first-time buyers still have time to purchase without
stamp duty costs.
Once the PPS number has been received from the DSP, it must be registered on the Revenue Commissioners' Central Registration System (CRS) under the relevant tax head before it can be used in a
stamp duty return.
He said: "Freezing
stamp duty will come at a cost to the Treasury but its existing receipt from that is not great because of the market.
The decision to put moving plans on hold follows reports earlier this month that Chancellor Alistair Darling was considering temporarily suspending
stamp duty payments or deferring payment of the tax to boost the housing market.