Tens of thousands of new homes could soon rise in east and south-east London thanks to a huge £18 billion regeneration programme, Transport for London has confirmed. At the heart of the plans is a £1.7 billion Docklands Light Railway (DLR) extension, which would run from Beckton Riverside under the Thames to a brand-new station in Thamesmead.

TfL says the project could unlock up to 25,000 new homes and create 10,000 jobs, transforming two long-neglected riverside areas into fully fledged new communities. The proposals, first unveiled in early 2024, won strong public support in the latest consultations. Government backing came in the autumn Budget, allowing TfL and the Greater London Authority to secure the loans needed to build the line.

Mayor of London Sir Sadiq Khan said the project was a “massive vote of confidence” in east London.
“It will transform travel in a historically underserved part of the capital, while creating thousands of new homes and jobs,” he said.

A Treasury spokesperson said extending the line will build 25,000 homes in total, create up to 10,000 new jobs and “crowd in nearly £18 billion of private investment” over 30 years. 

Both Beckton Riverside and Thamesmead are designated Opportunity Areas – parts of London earmarked for large-scale housing and jobs. But without new transport links, development on this scale wouldn’t be possible.

On the north side of the Thames, Beckton Riverside will get a new DLR station near Armada Way. The area currently has a retail park, business units, the Beckton Sewage Works, and the DLR’s main maintenance depot.

Plans include residential tower blocks, shops, schools, and green spaces, centred around the station. South of the hub, the Beckton Waterfront will become a mixed-use neighbourhood with homes, workplaces, leisure space, and even a potential Thames Clippers pier.

The first phase is already moving forward. Newham Council approved nearly 3,000 homes on the waterfront in October, while developer St William is investing £250 million to unlock its own site. Upgrades to the sewage works are also planned, including potential low-carbon energy use for new buildings.

From Beckton Riverside, the DLR will run under the Thames to Thamesmead, one of London’s most transport-poor areas. Abbey Wood on the Elizabeth line is the nearest rail hub.

A £23 million Government grant will fund a new Superloop bus route, linking Woolwich, Thamesmead, and Abbey Wood from 2026. TfL has also floated future DLR extensions to Abbey Wood or Bexley.

The Thamesmead Opportunity Area could deliver more than 15,000 homes and 8,000 jobs, with Thamesmead Waterfront – a joint venture between Peabody and Lendlease – aiming to create a new riverside community with homes of all tenures, shops, leisure, and community space.

Taken together, the Beckton and Thamesmead plans form part of a £18 billion, 30-year regeneration programme, with the DLR tunnel under the Thames as the key that could unlock two entirely new riverside “towns” for Londoners.