Interim Management Statement

Bellway plc                                  

                         Interim Management Statement                          

                                  5 June 2009                                  

Since the announcement of the Group's Interim Results on 31 March, there has
been no major change in demand for our products. First time buyers continue to
struggle to raise deposits and consequently access to the first step on the
housing ladder remains difficult. Whilst conditions vary from region to region,
the southern based divisions have experienced a marginally stronger market and
it is envisaged that turnover in these divisions will be much higher by the
year end than the northern based divisions whose markets still remain fragile,
particularly in the Midlands, Yorkshire and North West England.

With entry to the mortgage market still restricted and lenders' valuation
policies remaining inconsistent, cancellation rates are still running at
historically high levels. Despite this, net reservations since 1 February have
continued to average 105 per week thereby securing the volume target of 4,200
homes, thus underpinning the Group's performance for the year. To achieve these
reservations, incentives in the form of cash discounting, part exchange and
shared equity are still widely used, but are not increasing as a percentage of
selling prices, therefore bringing some stability to our pricing structure. The
level of completed stock units has now reduced from 1,000 at the end of January
to 660 at 31 May.

With bank debt currently standing at £111.3 million, Bellway continues to
operate well within its committed facilities. The focus of the business is
changing from primarily one of simple debt reduction to selectively increasing
production in certain parts of the country where demand is strongest. In
addition, the Group has instructed its land teams to begin acquiring land
suitable for traditional two storey housing.

The summer selling season normally heralds a slow down in activity and selling
homes in the early stages of construction is difficult, given the current
lending environment. Nevertheless, our current order book of reservations for
completion after 31 July presently stands at £228 million (£283 million - 31
May 2008) and with a further 9 weeks of selling to go, the Board aims to have
50% of next year's volume target secured as it enters the new financial year.

The Group will announce its preliminary results for the financial year ending
31 July 2009 on Tuesday 13 October 2009.

FOR FURTHER INFORMATION, PLEASE CONTACT:

JOHN WATSON, CHIEF EXECUTIVE & ALISTAIR LEITCH, FINANCE DIRECTOR FROM 7.30 AM
ONWARDS ON 0191 2170717