Trading Statement

Bellway PLC
03 August 2005

                                 Trading Update

                       For the Period Ending 31 July 2005

                            Wednesday 3 August 2005



Bellway is issuing the following Trading Update ahead of its preliminary results
for the year ended 31 July 2005 which will be announced on Tuesday 18 October
2005. We are pleased to confirm that we will deliver record full year results
for 2005 in line with market expectations.


Legal completions for the year were a new record at 7,001 homes, this is some 6%
ahead of last year and shows an increase in output in both private and social
homes. The overall average selling price achieved was circa £165,000 compared to
£161,400 last year, still one of the lowest in the industry. This performance
has been achieved against the backdrop of a less robust market place and is our
fourteenth year of organic volume growth.


The Group's policy of forward selling as far as possible continues to be
successful and the order book currently stands at £513 million compared to last
year's exceptional level of £587 million. Since the summer of 2004, selling
incentives have been more widely used to encourage hesitant home buyers to
commit to a purchase. Our operating margin for 2004/5 will be similar to the
prior year's 19.5%, however, if the level of selling incentives increases
further, this margin will come under pressure in the current year.


The Group is currently selling from circa 10% more outlets compared to this time
last year and this combined with our low average selling price encourages the
Group as it aims for another year of increased volume. This growth however is
ultimately dependent on the traditional uplift in sales activity in the Autumn
and next Spring and would be further supported if interest rates were to fall.


Bellway has continued to invest in land to support our long term plans for
organic growth. Our land bank with planning permission at 31 July is circa
21,500 plots compared to 20,700 at the same time last year. In addition, we have
increased our involvement in regeneration schemes, having been recently
nominated the contracted partner for projects in South Tyneside and North
Solihull and preferred partner at Meden Valley.


Our focus on the middle market has been reinforced by this growing urban
regeneration portfolio and should ensure that we are well positioned to continue
to grow in the future.






FOR FURTHER INFORMATION, PLEASE CONTACT ALISTAIR LEITCH, FINANCE DIRECTOR ON
0191 217 0717 OR 07855 337001





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