Bank of England lifts interest rates to 5%

The Bank of England has lifted interest rates to 5% - the highest level in five years.

Interest rates are now at their highest point since August 2001 and come amid evidence that more households are folding under the strain of higher overheads, such as council tax bills and energy prices.

Soaring property prices are believed to be one of the reasons the Bank has acted. Today the Halifax reported a 1.7% rise in house prices in October and said the average UK home now costs 8.6% more than it did 12 months ago.