London terror: Suspect went into shop and started stabbing people at random - reports

A man shot dead by police in south London on Sunday afternoon (local time) was wielding a machete and started stabbing people at random, according to reports and eyewitness accounts.

Three people were injured after the man went on a stabbing spree in Streatham.

Metropolitan Police confirmed the suspect had been pronounced dead. He has yet to be identified.

Witnesses have described the shocking scenes. One man told PA News Agency he saw the man being followed by who he thought was a police officer.

"I was crossing the road and saw a man with a machete and silver canisters on his chest being chased by what I assume was an undercover police officer.

"The man was then shot. I heard three gunshots," the unnamed witness told PA.

Two people were stabbed in the attack. The BBC reports one of them is in a critical condition.

In a Twitter post, UK Prime Minister Boris Johnson thanked emergency services.

He also reiterated that police had declared the incident terror-related.

"My thoughts are with the injured and all those affected," Johnson wrote.

Metropolitan Police Deputy Assistant Commissioner Lucy D'Orsi said a device strapped to the suspect's chest was a hoax.

"The incident was quickly declared as a terrorist incident and we believe it to be Islamist-related," D'Orsi said in a statement.

Local Labour MP Bell Ribeiro-Addy described the fear felt in the area.

"It is scary, I feel that fear, but Streatham is a very resilient community and we'll be fine," she told the BBC.