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Home Area South London

The new town that the government is set to build in South London with 15,000 homes

Thamesmead infamously underwent a botched development plan in the 1960s

Kumail Jaffer - Local Democracy Reporter by Kumail Jaffer - Local Democracy Reporter
27th January 2026
in Greenwich, Housing, News, Regeneration, South London
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London Assembly Members James Small-Edwards and Elly Baker
Credit: Kumail Jaffer/LDRS

London Assembly Members James Small-Edwards and Elly Baker Credit: Kumail Jaffer/LDRS

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Thamesmead Waterfront must be approved as one of the Government’s ambitious ‘New Towns’ to help solve London’s housing crisis, ministers have been told.

Up to 15,000 homes could be built on the 100-hectare site in South East London which was shortlisted by the Government as one of 12 possible ‘New Towns’ across the country. 

The project, which is being run by housing association Peabody, received a boost late last year when the Chancellor announced Central Government backing for a DLR extension to Thamesmead, with the station set to sit near the site.

However, it is still subject to final Government approval, with a decision set to be made in spring following a Strategic Environmental Assessment.

On Thursday (January 22) the London Assembly Planning and Regeneration Committee visited the site as part of an investigation into how ‘New Towns’ would work in practice in London, with the Local Democracy Reporting Service joining the visit.

James Small-Edwards, the Labour Assembly Member who chairs the committee, said it was an “complete no-brainer” for the scheme to go forward in Thamesmead.

London Assembly Members James-Small Edwards, Elly Baker and Thomas Turrell examine plans for the Thamesmead Waterfront development
Credit: London Assembly
A view of the proposed Thamesmead Waterfront site
Credit: Kumail Jaffer/LDRS
The proposed area for the Thamesmead Waterfront project. Credit: Peabody and Lendlease.

“You’ve got Peabody ready to go, you’ve go the DLR extension now approved by the Government – it’s a really exciting site, I think it’d be great for London,” he told the LDRS.

“It’s really important to bring down the number of people on housing waiting lists as well – I hope that we’ll get a stamp of approval in the spring.”

The capital is facing a substantial housing shortage, with more than 336,000 people currently on social housing waiting lists.

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Meanwhile, the number of private homes being started by developers fell by 84 per cent between 2015 and 2025, something the Mayor of London has blamed on a “perfect storm” of factors making it more difficult to build.

However, Peabody say they are ready to start work at the Thamesmead site as soon as they receive Government approval, with their aim being to construct 15,000 homes in land that is now unused.

Alongside Thamesmead, the other one of the 12 proposed schemes that sits within London is an expanded development bringing together Chase Park and Crews Hill in Enfield.

Mr Small-Edwards said the idea of New Towns is a “great way to meet the really ambitious housing targets” set by ministers and City Hall.

London is currently required to deliver 88,000 homes a year for the next decade to meet the capital’s needs.

He said the DLR extension announcement “shows how important transport infrastructure is” when it comes to delivering new homes in London, and suggested a similar proposal to extend the Bakerloo Line will have the same effect.

“That extension has been transformative and allowed them to bring forward a lot of homes, which are going to be really beneficial for Londoners,” he said.

“The main thing [with this project] is speed – this needs to start delivering homes. The ambition for this Government is for it to start doing so by the end of this Parliament.

“If we can get the approval, get the deliver model in, we can just let them build these houses and Londoners can start living in them.”

Thamesmead infamously underwent a botched development plan in the 1960s.

Intended to offer a new vision of urban living, including vast green spaces and elevated walkways, it ultimately failed due to a lack of infrastructure, including abandoned plans for a Jubilee Line extension to the area.

John Lewis, Executive Director at Peabody, said the context of developing the area was vastly different this time around, primarily down to the DLR extension announcement.

“Whilst the land’s always been there and has had the opportunity for development, it’s always had to be at a much lower scale because there wasn’t the the transport infrastructure in place,” he told the LDRS.

“We’re very committed to the fact that you have to have infrastructure before you start development, and of course that’s what that site needs. It hasn’t had the commitment before, so that’s the big difference this time. With the certainty of transport, it means we can start to be very confident in the delivery of the new town itself.

“We’ve been very clear for some years now that without decent public transport, accessing London and bringing people from London into Thamesmead is absolutely vital to bring a really good quality sustainable development on the waterfront.”

The Ministry for Housing, Communities and Local Government (MHCLG) has been contacted for comment.

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