Trading Statement

Bellway plc                                  

                                Trading Update                                 

                                 6 August 2009                                 

Bellway is today updating the market as to the outcome of the financial year
ended 31 July and outlining current trading and expectations.

During the course of the year the Group legally completed the sale of 4,380
homes (2008 - 6,556), the average selling price of which was circa £154,000
(2008 - £169,729). Market conditions have been extremely difficult since spring
2008, however, in the southern region, conditions proved to be more robust
especially in our North London, Essex and Thames Gateway divisions.
Consequently some 60% of the Group's legal completions have been derived from
this region. In the north, our Yorkshire, North West and Midlands divisions
have experienced sustained weakness throughout the last twelve months.

Sales incentives per unit, in the form of discounting, shared equity and part
exchange have been widely used but, encouragingly, have not increased over the
last few months. The part exchange stock has now reduced to £9.4 million from £
40.6 million at the beginning of August 2008. The fall of 9.3% in our average
selling price was primarily as a result of these incentives and a higher
percentage of social housing sales. It is anticipated that the operating margin
will be around 6% - 7% and no further asset write down is envisaged provided
current market conditions continue.

Cash generated has exceeded the Board's target of reducing debt by £100 million
from £218 million at 31 July 2008, with net bank debt now standing at £37
million, comfortably within our current committed facilities of £370 million.
Bellway is now looking to selectively increase work in progress spend on
existing developments, where stock levels have fallen, as well as increasing
the number of new outlets. In addition, in recent weeks the Group has been
successful in contracting to acquire land, predominantly in our southern
divisions, at prices the Board believes will deliver attractive margins. We
will continue to invest selectively to increase our land bank as attractive
opportunities become available provided, of course, that the market remains
stable.

With the summer season upon us, our divisions are seeing the traditional
decline in visitors to sites but the current sales rate being achieved is
encouragingly ahead of management's expectations. The order book at 31 July of
reservations for future completion stands at £368 million (2008 - £370 million)
and in unit terms is equivalent to approximately 58% of the anticipated outcome
for the year ending 31 July 2010.

Notwithstanding the extreme market conditions experienced over the last
eighteen months, the Group has retained a national coverage and remains in a
strong position to grow should markets improve, especially given its robust
balance sheet and low gearing.

Bellway plc will announce its preliminary results on Tuesday 13 October 2009.

Certain statements in this announcement are forward-looking statements which
are based on Bellway plc's expectations, intentions and projections regarding
its future performance, anticipated events or trends and other matters that are
not historical facts. Such forward-looking statements can be identified by the
fact that they do not relate only to historical or current facts.
Forward-looking statements sometimes use words such as "aim", "anticipate",
"target", "expect", "estimate", "intend", "plan", "goal", "believe", or other
words of similar meaning. These statements are not guarantees of future
performance and are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Given these risks and
uncertainties, prospective investors are cautioned not to place undue reliance
on forward-looking statements. Forward-looking statements speak only as of the
date of such statements and, except as required by applicable law, Bellway plc
undertakes no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.

FOR FURTHER INFORMATION PLEASE CONTACT:

JOHN WATSON, CHIEF EXECUTIVE & ALISTAIR LEITCH, FINANCE DIRECTOR FROM 7AM
ONWARDS ON 0191 2170717