Seven victims are confirmed dead after a group of terrorists with hoax explosives strapped to their chests drove a van into pedestrians on London Bridge before jumping out and stabbing people.
A Kiwi man is among the injured after three Jihadi terrorists shouted "this is for Allah" as they stormed the Borough Market area, full of pubs and restaurants, and attacked punters with 12-inch hunting knives.
London police have confirmed that seven people are dead and that three suspects have been shot dead.
Police say they believed there were three attackers but there was still "more enquiries to be 100 per cent confident".
Christchurch man Oliver Dowling, 32, was stabbed in the face, neck and stomach, his sister Freddy posted on Facebook.
He is now recovering after a four-hour surgery.
"Doctors are very happy with how he's come out the other side. A massive thank to the University of London Hospital for their tireless efforts in helping my brother out!!"
Assistant Commissioner for the Metropolitan Police, Mark Rowley, spoke outside Scotland Yard in the early hours of the morning today.
After the van hit the pedestrians it was driven into the Borough Market area, Rowley said.
The three attackers excited the vehicle and began attacking patrons. Police had shot dead the three men eight minutes from when they got the first call, Rowley said.
"Armed officers responded very quickly and bravely, confronting three male suspects who were shot and killed in Borough Market.
"The suspects were wearing what looked like explosive vests but these were later established to be hoaxes."
Rowley pleaded with anyone who had photos of video in the area to share it with police for anyone concerned about a loved one to contact the Casualty Bureau.
"Our thoughts are with all those involved and those responding to both incidents," he said.
"We are reviewing and planning to strengthen our policing stance across London over the forthcoming days, and there will be additional police and officers deployed across the capital.
"I would like to ask the public to remain vigilant and let us know if they see anything suspicious that causes them concern and dial 999 immediately."
The Sun is reporting that an innocent man was shot in the head and killed as police opened fire on the attackers outside the Wheatsheaf pub.
The men had been trying to get into the pub, smashing windows, but the doors were locked.
The BBC has published a photo of the possible attackers showing one of the men had canisters strapped to his body.
A photo has also been published of the van they were in. There are unconfirmed reports that it has logos for DIY store B&Q and Hertz van.
"I thought, 'I'm gonna try and hit him, I'm gonna try and knock him down'. I spun the cab round, I was about to ram one of them, but he side-stepped and three police officers came running towards them with their batons drawn.
"I was shouting at everybody, just get away from the area, stay back, just run the other way. There were a good few hundred people out there."
"He's veered across the road towards the right hand of where Southwark Cathedral is and rammed it where the steps are.
"He just rammed it towards them, wedged it in between the lamppost and the steps and so he's hit people there."
Image 1 of 8: Armed Police officers stand guard on London Bridge in central London. Photo / AP
Police stormed bars in the area telling patrons "get the f**k down, s**t's about to go down".
A Kiwi, Ross Fowler said he was in a German beer house when police came inside. He and a friend hid under stairs before police told them to get out and run from the cordons in groups of five.
He was trying to get home on a bike as London's transport authority had closed London Bridge rail station, as well as Bank and Monument station and buses were being diverted, at the request of the police.
Police treated injured people and carried them away at the end Thrale Street.
Members of the public were told by police to "run as fast as they could" westbound.
Fifty armed police entered Monument station with police dogs and bystanders were told to run.
Police are advising people who live within the London Bridge cordon to stay somewhere else tonight if they can.
'"Following updates from police and security officials, I can confirm that the terrible incident in London is being treated as a potential act of terrorism," May said in a statement."
Pictures of the white van will be circulated across London.
Tony Murphy, who has a flat opposite Southwark Bridge, said he heard "rapid gunfire".
"I'm actually former military," he said.
"I heard what was significant gunfire.
"At first I thought it was fireworks but it was so rapid I recognised what it was.
"It went on for quite a long time. The response took about 10 minutes. I immediately text my family and they said they heard it. It was tremendous gunfire."
Holly Jones, a BBC reporter at the bridge when the incident happened, said a van had swerved off the road into a crowd of pedestrians.
"A white van driver came speeding - probably about 50mph - veered of the road into the crowds of people who were walking along the pavement.
"He swerved right round me and then hit about five or six people. He hit about two people in front of me and then three behind."
Jones later reported seeing a man being arrested by police. She said he was handcuffed and had his shirt off.
She spoke to a French woman who had been injured in the incident.
She told Jones: "I don't know where those other two people are. So the police are checking the Thames.
"They were right near the edge of the bridge. It looks potentially they could have been thrown over."
Jones also told Radio 5Live: "I saw it hit the people in front of me. I feel just so lucky now.
"It was all a blur, but as much as I can remember it was a male on their own [driving the van]. There are five people on the floor being attended too. There are loads of city police officers helping and boats on the Thames searching."
Witness Alessandro told the BBC that he saw a van at the end of London Bridge with no driver inside and described the "five or six" people hit as "very young".
He said: "I was going up the stairs of London Bridge Station. I saw this van going left and right trying to hit as many people as he could. I tried to help people.
"At the end of the bridge we saw a van but we didn't see anyone in the van.
"I think [the driver] went to the end of London Bridge. We didn't see the van stop because we were trying to help people.
"Everything was confused. There were five or six people [hit]. Three of them were conscious. One of them was not talking at all. He was just down.
"The five or six people we tried to help were really young."
Another taxi driver, named only as Paul, said: "I was just going over London Bridge and on the left hand side it looked like someone had been knocked off a bike.
"A few yards on I saw another person laying down and a woman screaming.
"A few yards on from that there was a couple of bodies on the right hand side."
One witness wrote on Twitter: "Passerby says 15-20 people have been run over. Another says 7 or 8."
"Horrific scene at London Bridge. Bodies strewn over the pavement, B&Q van mounted the pavement. I feel sick," one witness wrote.
Another added: "On a boat travelling under London Bridge. Buses stopped. Police lights everywhere and boats checking the water. Please let everyone be okay!"
The Metropolitan Police posted on Twitter: "We are dealing with an incident on London Bridge, when we have more information we will update this twitter feed."
Scotland Yard said officers were at the scene and they would update with further information.
London Ambulance said multiple resources were attending the area.
The attacks in the streets of London come just days after armed troops were pulled off the streets of Britain.
Thousands of soldiers were deployed by the Prime Minister following the bombing at Manchester arena as she raised the UK threat level from 'severe' to 'critical'.