The report examines the relationship between urban economy and housing value in England and Wales. Main findings are：city homeowners in the Greater South East have seen much larger gains in housing wealth than other homeowners，and the same trend shows in rents for private renters. The inability of housing supply in prosperous cities drives the house prices. The planning system makes this inequality worse and threaten financial stability. However，government policy inflates the value of house，and increase housing wealth inequality and North-South divide. The loose monetary policy struggles to finance the supply of new homes. Based on these phenomena，a lesson could be learned for China.