The lender found that housing movement had dropped sharply over the past 40 years.
In the 1980s, people moved home every nine years on average, and this has increased to every 21 years.
Housing transactions have fallen from 1.5 million to 1.8 million in the early 2000s to around 1.1 million today.
Tax has played a major role in the changes, as almost a quarter of first-time buyers say it is a barrier, while the figure rises to around a third among second-steppers and downsizers.
The mutual said every home sale generates around £27,00 for the economy through conveyancing to removals and said the government should consider reforming stamp duty.
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Tom Simpson, managing director of homes at Yorkshire Building Society, said: “When fewer people move, the effects are felt right across the housing market. It becomes harder for first-time buyers to find suitable homes, families can struggle to move as their needs change, and the wider economy misses out on valuable revenue.
“That’s why we believe the case for reforming stamp duty is becoming increasingly difficult to ignore.”
The lender said reviewing stamp duty would not be as expensive as might be feared, as it would increase tax revenue from other areas and stimulate economic growth.
It estimates that restoring transactions to early-2000s levels could potentially bring in additional economic value of £66bn over a five-year period.
Simpson added: “The tax is becoming ever more expensive due to rising house prices and disproportionately impacts borrowers in the South, where higher prices mean Southerners pay more for each house move and first-time buyers pay more despite the incentives for them.
“By tackling this clear barrier, alongside issues like affordability and difficulties raising a sufficient deposit, the housing market can better meet changing needs, support economic activity and create a stronger pipeline of homes for future buyers.”
