I WAS speaking to a friend who is selling his house the other day, and his experience demonstrates perfectly why we have a housing shortage in really simple terms we can all understand.

The estate agents valued his home at £190,000-200,000. He put it up for £220,000 and currently has 3 offers all for the asking price (people didn’t even bother to offer five-10 per cent less, as expected). So now he’s asking for £230,000 and he fully expects at least one of the bidders to meet the asking price.

This, for those of us who aren’t in la la land with Inform Fareham, makes perfect economic sense. These are time tested principles, demonstrated perfectly by the above.

If you have more demand than supply, prices get pushed up, as we have seen, because there are several people competing for the same home. It’s a sellers market.

Conversely, if you have more supply then demand, prices get pushed down, because there are several homes available to each buyer, and he can put in several offers on different homes and see who accepts the lowest offer. It’s a buyers market.

Someone really needs to correct Inform Fareham. A new group needs to emerge to challenge their views. They are simply a bunch of left wingers masquerading as informed knowledgeable people. They are not. They know nothing of economics, of supply and demand or of house price determination. It is a case of the blind leading the blind. They haven’t got a clue what they are doing yet find themselves in a position of undue influence. They talk the talk but they cannot walk the walk.

Colin Quick, Fareham