House prices rise 5% a year in more bad news for would-be buyers

Figure is twice that of pay settlements across the country and comes amid a rise in inflation

The rate of house price growth increased to 5% in August, according to official government figures, pushing homes further out of the reach of aspiring young buyers already squeezed by rising inflation.

The average UK house price rose by 1,000 in August to reach 226,000, the Office for National Statistics (ONS) said. The increase took the annualised rate of house price inflation to 5%, up from 4.5% in July and more than double the rate of pay settlements across the country.