Plans for a significant extension of the Docklands Light Railway (DLR) have received a major boost, with Transport for London (TfL) projecting it will unlock the delivery of up to 30,000 new homes and support the creation of 10,000 jobs for Londoners. The project, which has garnered strong public support, focuses on historically underserved areas in the capital's east.
Government Backing Unlocks Major Regeneration
The proposed extension, first announced in early 2024, gained crucial momentum when Chancellor Rachel Reeves committed government funding in the Autumn Budget of 2025. This financial backing effectively paves the way for large-scale development in designated Opportunity Areas, where substantial housing and commercial growth is planned.
Mayor of London Sadiq Khan welcomed the decision, stating: "I'm really pleased that the Government is backing the DLR extension to Thamesmead... 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."
Beckton Riverside: A New Town Centre Emerges
The first phase of the extension will see the DLR stretch from Gallions Reach to a new station at Beckton Riverside, located within the Royal Docks and Beckton Riverside Opportunity Area. This site, currently home to a retail park, business park, and sewage works, is slated for a dramatic transformation.
The new station, planned just north of Armada Way, is intended to become the transport hub for a new town centre. The Mayor's vision includes:
- Residential tower blocks replacing much of the current Gallions Reach Shopping Park.
- Ample retail space and new community infrastructure.
- Extensive green and open spaces.
- A southern Beckton Waterfront neighbourhood with mixed-use development and a potential Thames Clippers pier.
To address the nearby Beckton Sewage Treatment Works, plans include upgrades to manage odours and explore using its heat energy for low-carbon heating in the new developments. The first phase, a proposal for nearly 3,000 homes by St William Homes LLP, was approved by Newham Council in October 2025 and awaits final sign-off from the Greater London Authority.
Crossing the Thames to Thamesmead Waterfront
From Beckton Riverside, TfL plans to build a tunnel under the River Thames to establish a new station in Thamesmead, an area notoriously poorly connected by public transport. This link is seen as key to unlocking the Thamesmead and Abbey Wood Opportunity Area, with the potential for over 15,000 new homes and 8,000 new jobs.
Thamesmead's regeneration, known as Thamesmead Waterfront, is a joint venture between developer Lendlease and housing association Peabody. The government has further endorsed its potential by including it on its New Towns Taskforce shortlist. While detailed plans are pending, the developers promise an "accessible, inclusive and productive" new concept for waterfront living with substantial homes, retail, and leisure offerings.
Complementing the rail extension, a new Superloop bus service, the SL11, funded by a £23m government grant, will link Woolwich and Abbey Wood via Thamesmead, with a hoped-for launch in 2026. TfL has also not ruled out future DLR extensions from Thamesmead towards Abbey Wood or Bexley.
