Homes England has approved a £124m funding package to unlock more homes and deliver new infrastructure at Barking Riverside in east London.

The 443-acre brownfield site, formerly occupied by Barking Power Station, is one of Europe’s largest placemaking projects.

Upon completion the new mixed-use development will provide family homes, enhanced green spaces, seven new schools and better access to the River Thames, as well as a significant amount of retail, employment and community space.

The funding agreed by Homes England is a combination of loan and grant funding and will help master developer Barking Riverside Limited (BRL) — a partnership between L&Q and the Mayor of London – to prepare the land including flood defence work and the construction of an energy centre and parks.

This vital infrastructure will help make it possible to build another 16,500 homes on the site, to complement the 3,500 already built or under construction by housing association, L&Q, and housebuilder, Bellway.

This could see up to 20,000 new homes in total delivered at Barking Riverside, creating a community of up to 50,000 people.

The site’s current planning consent for 10,800 homes was originally approved by the London Borough of Barking and Dagenham in 2008, however it’s since been identified that the site could house up to 20,000 homes, with a minimum of 35% of these being affordable.

Significant transport infrastructure to unlock the initial 10,800 homes has already been completed following a previous funding commitment from Homes England in 2020.

The new Barking Riverside overground station opened in 2022, while the development will also give the community access to a network of footpaths and cycleways with direct access to two kilometres of south-facing riverfront on the Thames.

Future homes built at Barking Riverside will be powered by a low carbon District Heating Network, which means that heat and hot water is generated locally and brought to homes through an underground network of insulated pipes, an environmentally friendly alternative to gas boilers.

Once completed, Barking Riverside will be served by seven new schools. Five have already been completed, including two primary schools, a secondary school and a Special Educational Needs (SEN) school.

Matthew Carpen, managing director of Barking Riverside, said: “Barking Riverside has delivered thousands of vitally needed new homes for Londoners, on brownfield land that has already seen a significant investment in infrastructure.

“However, the support from Homes England will enable this project to move into a new era — increasing the level of ambition and unlocking housing at the scale needed to truly make an impact.

“We are excited to make our new masterplan a reality, which would not be possible without a number of important partnerships. Fundamentally, this funding from Homes England ensures that Barking Riverside can remain delivery-focussed and resilient despite a challenging market.”

Peter Denton, chief executive of Homes England, added: “Delivering the government’s target of building 1.5 million homes will require support and collaboration from across the housebuilding sector.

“At Barking Riverside there is potential to literally build more homes — and more affordable homes — in a place where they are desperately needed.

“And that’s why we’ve stepped in, providing funding to deliver vital infrastructure, unlocking more land, so that our partners can build even more homes for the people of east London to enjoy and be proud of.”