Plans to extend the Docklands Light Railway (DLR) into two key parts of East London have received a major boost, with Transport for London (TfL) stating the project will pave the way for up to 30,000 new homes and 10,000 jobs. The proposed extension to Beckton Riverside and Thamesmead, now backed by Government funding, is set to transform so-called 'Opportunity Areas' into thriving new town centres.
Government Backing Unlocks Major Regeneration
The capital's transport authority confirmed that its latest consultation on the DLR extension showed strong public support. The project, first announced in early 2024, gained crucial momentum when Chancellor Rachel Reeves committed Government funds in the Autumn Budget of 2025. This financial backing effectively unlocks the potential for tens of thousands of new homes in areas historically underserved by transport links.
Mayor of London, Sir Sadiq Khan, welcomed the move, calling it a "win-win" and a "massive vote of confidence in London." He emphasised that the extension would not only revolutionise travel but also provide a significant economic boost locally and nationally.
Transforming Beckton Riverside into a New Town Centre
The first of the two Opportunity Areas is Beckton Riverside, situated within the Royal Docks. TfL plans to extend the DLR from Gallions Reach, adding a new station just north of Armada Way. This station is envisioned as the transport hub for a completely new town centre.
Currently home to a retail park, business park, and the Beckton Sewage Treatment Works, the area is poised for dramatic change. The Mayor's London Plan outlines a vision where much of the Gallions Reach Shopping Park makes way for residential tower blocks. The blueprint also includes new retail spaces, community infrastructure, green areas, and a potential Thames Clippers pier at a developed Beckton Waterfront.
To address the nearby sewage works, plans include upgrading the facility to manage odours and potentially harness its heat energy for low-carbon heating in the new developments. The first major phase of this regeneration, a proposal for nearly 3,000 homes by St William Homes LLP, was approved by Newham Council in October 2025 and now awaits final sign-off from the Greater London Authority due to its scale.
Thamesmead Waterfront: A New Town on the Thames
From the new Beckton Riverside station, the DLR would travel via a tunnel under the River Thames to a new station in Thamesmead. This area has long suffered from poor public transport connections, with Abbey Wood on the Elizabeth line being the only significant hub nearby.
Thamesmead and Abbey Wood form the second Opportunity Area linked to the extension. With improved transport, the riverside location could deliver over 15,000 new homes and 8,000 new jobs. The area's potential was further highlighted earlier in 2025 when it was named on the Government's New Towns Taskforce shortlist.
The vision, known as Thamesmead Waterfront, is a joint venture between developer Lendlease and housing association Peabody. Spanning 100 hectares on the Thames's southern bank, it is one of London's last remaining undeveloped waterfront sites. While detailed plans are yet to be fully revealed, the partners promise an "accessible, inclusive and productive" concept for waterfront living with substantial new homes of all tenures, retail, and leisure offers.
Complementing the rail project, a new Superloop bus service, the SL11, funded by a £23m Government grant, is also planned to link Woolwich and Abbey Wood via Thamesmead, with a hoped-for launch in 2026.
This combined transport and housing initiative marks one of the most significant regeneration programmes in East London, aiming to reshape the landscape and connectivity of the capital for decades to come.
