Trading Update and Board Changes

Bellway p.l.c.                                 

                        Trading Update & Board Changes                         

                                 5 August 2011                                 

Following the end of its financial year on 31 July, Bellway is updating the
market on recent trading and forthcoming Board changes.

Trading Update

The Group has legally completed 4,922 homes, an increase of 7.1% compared with
the previous year's total of 4,595. The average selling price of homes sold has
increased by 7.2% from £163,175 to around £175,000 and this increase is mainly
derived from changes in product mix. Operating margin is set to rise from 6.7%
to between 8% and 9% for the full year with the second half margin being
towards 10%. This performance will result in profit before tax now being
modestly ahead of the current market consensus of £62 million.

Following the Interim Management Statement on 10 June, reservation rates
throughout the summer months, whilst traditionally a slower selling period,
have been ahead of the same period last year. The Group currently has an order
book of £426.8 million (2010 - £421.0 million), representing 2,497 homes, of
which 2,334 should legally complete in the next twelve months.

As at 31 July, the Group had net cash of £3 million with combined bank
facilities of £290 million, having expended around £250 million on land and
land creditors during the year. In addition, some 4,500 plots with an
approximate value of £230 million currently have terms agreed.

Bellway's continuing aims for 2011/2012 are to deliver incremental volume
growth, repair operating margins and, through changes in product mix, improve
average selling prices, all of which are largely dependent on the level of
consumer confidence and the availability of mortgage finance.

Notwithstanding the current global economic uncertainties, should market
conditions remain stable and reservations follow their normal seasonal trends,
then the Board looks forward to delivering these aims and, in so doing, further
increase profit before tax.

Board Changes

Alistair Leitch (57), Group Finance Director, has decided to retire from the
Board on 31 January 2012. Alistair joined the Group, initially as a Divisional
Accountant in Scotland in 1981. In 1986 he was appointed Finance Director of
the North East Division, joining John Watson, the current Chief Executive, who
was Managing Director of the division at that time. Some 10 years later he was
promoted to the role of Group Chief Accountant and was subsequently elevated to
the position of Group Finance Director in 2002. The Board would like to place
on record its sincere gratitude for his dedicated service and highly valued
contribution to the Group over the years and wishes him a long and happy
retirement.

Alistair will be replaced by the current Group Chief Accountant, Keith Adey
(32), who will join the Board on 1 February 2012 as Group Finance Director.
Keith, a graduate of Durham University and a Chartered Accountant joined
Bellway from Grainger Plc in 2008. The Board look forward to working with Keith
in his new role.

The company will announce its preliminary results on Tuesday 18 October 2011.

FOR FURTHER INFORMATION PLEASE CONTACT:

JOHN WATSON, CHIEF EXECUTIVE & ALISTAIR LEITCH, FINANCE DIRECTOR FROM 7.30 AM 
ONWARDS ON 0191 217 0717

Certain statements in this announcement are forward-looking statements which
are based on Bellway p.l.c.'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 p.l.c. undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.