Peabody’s regeneration of South Thamesmead reached a significant milestone this week, with a “topping out” ceremony marking the latest phase of construction in the area.
The event celebrates the second of Peabody’s seven-phase masterplan for the area. A joint venture between Peabody and housebuilder Lovell, this phase of development – designed by Karakusevic Carson Architects – will deliver 329 energy efficient, mixed tenure homes (42% of which will be affordable) in a lakeside setting. The first blocks of homes in this phase are set to complete in late 2025.
The topping out took place on top of a 16-storey block at the southern tip of the site, with final bricks into the wall by special guests, the Deputy Mayor of London for Housing and Residential Development, Tom Copley; and Leader of Bexley Council, Baroness Teresa O’Neill OBE.
The phase two construction site sits next to the first phase of development which completed in 2022 and forms the civic heart of South Thamesmead. The initial phase includes 534 new homes of mixed tenures, a new public square, library with community facilities, and high-quality commercial space for shops, services and cafes.
The Lovell team working on phase two includes local apprentices, recruited as part of their social value commitment. The housebuilder is supporting the local community in several ways while working in the area. This includes work experience placements, careers information and guidance sessions, and financial support for community initiatives.
Peabody’s seven-phase masterplan for South Thamesmead – which is in the Abbey Wood and Thamesmead Housing Zone – will deliver a total of 2,800 homes close to Abbey Wood Station. The creation of high-quality, efficient homes is a key part of Peabody’s wider work to improve, grow and look after Thamesmead for the long term.
Thamesmead has the scale and potential to become a thriving new town for London, with the potential to deliver 20,000 new homes and significant economic growth. Peabody’s plan for Thamesmead includes the delivery of 5,000 homes across South and West Thamesmead and a further 15,000 homes at the Thamesmead Waterfront site – one of the capital’s most exciting and deliverable growth opportunities – in the north of the town.
Peabody is working with TfL and partners to develop the business case to extend the Docklands Light Railway to the north of Thamesmead. Getting this critical infrastructure in place is a priority project for the Mayor of London, unlocking delivery of up to 30,000 homes on both sides of the River Thames.
John Lewis, Peabody’s Executive Director for Sustainable Places, said: “Thamesmead has huge potential to be a thriving new town for London, delivering up to 20,000 new homes and economic growth on a major scale. Our masterplan for South Thamesmead is an important part of this – providing 2,800 much needed new homes, outstanding public realm, and a public square with space for educational, commercial and leisure facilities.
“Today’s topping out is a significant milestone in the rejuvenation of South Thamesmead – and a reminder of what’s possible elsewhere in the town. We look forward to welcoming residents to phase two in early 2026 and to continuing our ambitious plan to improve, grow and look after the whole of Thamesmead, now and for years to come.”
Tom Copley, Deputy Mayor of London for Housing and Residential Development, said: “I am delighted to see this development in South Thamesmead move closer to completion, supporting the urgent demand for new affordable homes for Londoners.
“This development close to Abbey Wood Station will deliver 2,800 high quality homes that will provide tangible benefits for residents of the local community – and it’s part of a wider plan for Thamesmead with tens of thousands more homes.
“It’s vital that we also have the right infrastructure in place for this urban extension, so extending the Docklands Light Railway to Thamesmead is another big priority for the Mayor, as we work to build a better and fairer London for everyone.”
Baroness Teresa O’Neill OBE, Leader of Bexley Council, said: “We welcome this next phase of the development and continue to work with our key partners on this long-term project to deliver new homes, jobs and supporting infrastructure across Thamesmead and the north of Bexley.
“We are already seeing the area transformed for our residents, with excellent new facilities being built for the local community, such as The Nest Library and community space in Cygnet Square.
Mary Parsons, Regeneration and Partnerships Director at Lovell Partnerships: “Lovell is proud to be topping out phase two today. Through our partnership with Peabody we are not only helping to physically transform South Thamesmead, we are also generating real social value for the community here.
“By creating new jobs and apprenticeships, supporting local businesses and delivering new energy efficient homes, both partners are working together to deliver lasting, positive change for the people who call Thamesmead home”.
