Reeves to announce Docklands Light Railway extension to Thamesmead in plan to ‘unlock’ 25,000 homes

Rachel Reeves is set to announce an extension of London’s Docklands Light Railway (DLR) in a move that is being seen as a boost to a major regeneration project.

The Treasury told Housing Today this morning that the chancellor is expected in next Wednesday’s Budget to confirm the extension of the DLR from Gallions Reach to Thamesmead, with a new station at Beckton.

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

The plan was welcomed by housing association Peabody, which is masterminding a long-term plan to regenerate the 1960s Thamesmead estate and the surrounding area.

It has a long-term ambition to build 20,000 new homes across South and West Thamesmead and Thamesmead waterfront.

John Lewis, executive director of sustainable places at Peabody, said: “Thamesmead has huge potential to be a thriving new town, and Government support for the DLR extension takes us one step further to unlocking this. Enabling a major uplift in housing and boosting significant economic growth, this vital transport link will help to bring lasting benefits locally, regionally and nationally. We look forward to pressing on with plans to deliver the Thamesmead Waterfront as part of our long-term commitment to improve, grow and look after the town.” 

Peabody is working through a seven-phase plan for south Thamesmead to deliver around 2,800 homes. It completed the first 534-home phase in 2022 and has formed a joint venture with Lovell Partnerships for the 329-home phase two. Phases three to seven are expected to deliver nearly 2,000 homes.

Thamesmead Waterfront, in the northern part of the site, is being developed by a Peabody–Lendlease joint venture, with the potential for 15,000 new homes. The 100-hectare brownfield site has been named by the government as a potential new town following the publication of the New Towns Taskforce report in September.

>>See also: Whole-place regeneration at scale in Thamesmead: A conversation with Peabody

>>See also: The housing sector was delighted with the spending review – but lack of transport investment could scupper its delivery in London

The news of the Chancellor’s support for the DLR extension was also welcomed by mayor of London Sadiq Khan, who had been calling for the move.

Khan said: “I’m really pleased that the government is backing the DLR extension to Thamesmead - something I’ve long called for alongside London’s businesses and communities.

“The project is a win-win and a massive vote of confidence in London. It will not only transform travel in a historically underserved part of the capital, but also unlock thousands of new jobs and homes, boosting the economy not just locally but nationally.”

The DLR extension is expected to cut the time taken to travel from Thamesmead to the City of London from around an hour to 35 minutes.