iPhone5 self-registering/not registering touch

Hi,

Just this started happening recently, I have also just noticed for a breif moment when I turn the screen on I can see verticle bars on the screen fade out after a few seconds.

Basically, the screen does not register touch, it's rare I can swipe and sign in. On the occasions when I finally can after a few seconds the phone will start self registering touches that i'm not making - seemingly doing it's own thing.

I am lead to believe this is a hardware issue from the fact that I can see these verticle lines for a breif moment when I turn the screen on, although could that be unconnected?

Is this a hardware or software issue, if hardware is it something I can fix/replace, or is the phone rendered useless now?

Thanks

Elliott