Reform UK has said it will prioritise British-born workers under 35 when allocating social housing if it were to enter government.
On top of British-born workers, former military service personnel and married couples with children will also be prioritised, Reform said.
A Labour spokesperson called the plans "unserious and unworkable", saying it could leave British citizens without a home.
Deputy leader Richard Tice has also set out plans to build 50,000 affordable social homes a year at a news conference, a policy which the party says will require no new taxes or borrowing.
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Tice said he wanted the rules on who was allocated a home to be changed away from need to suitability, putting British families, workers and veterans at the front of the queue, saying: "This comes down to fairness."
"We're saying that the first people we should be looking after are young, British workers – under 35, young British married couples, young British veterans – who have done the right thing," he said.
"They've got a job, they're doing their best, working in their community, setting a fine example, because the role of the British government is actually to look after British citizens first."
Rules would be changed to reserve at least half of all social homes in England for British-born workers aged under 35, with prioritisation also given to married couples, veterans, victims of domestic violence and care leavers.
Tice claimed there were currently 540,000 existing affordable social homes occupied by overseas nationals and he wanted that to change.
"It's not fair that young British working families can't get on the housing ladder when overseas nationals have come to the UK and, because of the current rules based on need rather than suitability, they have jumped ahead in the queue," he said.
"We just don't think that's right: I can't think of another country where you rock up with a family and you expect the local taxpayer in that country to pay for your housing needs."
UK or Irish nationals made up 88.5% of main social home householders in 2024/25, according to the English Housing Survey.
That means around 11.5% of main householders, the person in whose name the social home is rented, were non-UK or Irish nationals.