Plans to extend the borough’s Overground line have begun to take shape.

Transport for London (TfL) has announced it is now looking for a contractor to extend the line to Barking Riverside.

The £263 million extension will provide a crucial link for east London’s biggest housing development site, which will include 10,800 homes.

Frank Nash, director of Dagenham Sunday Market, said it is good news for the market and residents alike.

“I think it will be great for the (Riverside) development because the bus service isn’t great,” he said.

“For us it’s great news because transport links at the market are poor with everyone having to drive there.

“It delivers people to the market and that can only be a good thing – anything that gets more people to the area is good news.”

Leader of the council, Cllr Darren Rodwell, said: “I welcome the announcement which brings with it much needed jobs and opportunities for local people and importantly opens up Barking Riverside.

“As a council we have worked hard with our partners including TfL and others on our ambition for growth and will continue to make sure that our residents reap the benefit of today’s announcement.”

Work on the 4.5km extension to the Gospel Oak to Barking Overground line is scheduled to begin in 2017 once improvement works to the track have been completed.

Services on the extended line are expected to commence in 2021.