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The Met Police received reports of a vehicle being driven into a house in Hainault and “there were reports people have been stabbed”.
“We understand the suspect went on to attack other members of the public and two police officers,” the force said.
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Footage shared on social media showed a man with a long knife in Laing Close.
“We are awaiting an update on the condition of those injured,” the force added.
Hainault London Underground station is closed, Transport for London (TfL) says, and local buses are being diverted.
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Deputy Assistant Commissioner Ade Adelekan said: “This must have been a terrifying incident for those concerned.
“I know the wider community will be feeling shock and alarm.
“People will want to know what has happened and will we provide more information as soon as we can.”
Police added the incident did not appear to be terror-related and officers were not looking for other suspects.
“We do not believe there is any ongoing threat to the wider community,” a spokesperson said.
Wes Streeting, MP for Ilford North, wrote on X, formerly Twitter: “A critical incident has been declared in Hainault.”
“There are station and road closures in place. The police, ambulance service and fire brigade are responding.
“One male detained. I would urge people not to speculate until details are confirmed or post footage on social media.”