The Construction Industry Federation (CIF) has called on Wicklow County Council to abandon its new housing strategy, which it believes is unconstitutional and discriminatory.
The council's County Settlement Plan, finalised earlier this week, would prevent people outside Wicklow from buying new houses in parts of the county such as Laragh and Talbotstown.
It also prevents residents in areas of "urban" Wicklow, such as Bray, Arklow and Wicklow town, from having unlimited access to new houses in small towns such as Avoca, Kilmacanogue and Roundwood.
And new homes in small villages, such as Annamoe and Rathdangan, will be available exclusively to first-time buyers who have been living within 8km of the area for 10 years or more or are employed in the area. Existing homeowners in these areas will not be allowed to buy new houses, except if an existing home is part of a judicial separation or divorce.
The strategy divides the county into 10 categories. Some 50 per cent of new homes built in Category Five, including Ashford and Enniskerry, will be available on the open market with the remainder available to people living or working in Wicklow for one year or more.
New homes in Category Six, including Avoca and Roundwood, will be divided in three, with 25 per cent available on the open market and 25 per cent available to those living and working in Wicklow for one year or more, but excluding "urban" Wicklow dwellers. The remaining 50 per cent will be available to those living or working for five or more years in Wicklow, again excluding "urban" areas.
Martin Whelan, CIF's head of corporate affairs, said the policy appeared to discriminate against people on the basis of where they're from. "It is difficult to see such a policy having any constitutional basis," he said.
He said future generations of larger towns such as Wicklow were expected to continue living there as they would not be allowed to purchase properties in other parts of Co Wicklow.
"Ironically, these same people will be able to purchase properties in other counties, which will inevitably happen as it will be the only means of getting on the property ladder. This is totally ludicrous," he said.
Green Party councillor Deirdre de Burca said it had been very difficult to agree a policy but the strategy was the best that councillors could come up with.
"We are trying to find a balance to protect rural areas by channelling in migration largely to urban areas and giving priority to local housing need," she said.
"All we are trying to do is implement Government policy, including the sustainable rural planning guidelines."
However, Wicklow Fine Gael TD Billy Timmins described the strategy as "off the wall".
"If an Irish person sought to purchase a new house in a town in France or England and was refused on the basis that they were non-natives, there would be an outcry," he said.