One man died and nine people were hospitalized following the assault, the latest in a series of terror attacks to hit the United Kingdom this year.
The driver, a white man, was wrestled to the ground by members of the public and then arrested at the scene, officials said. He was being held on suspicion of terrorism offenses, police said.
Eyewitnesses reported chaotic scenes as the incident unfolded just after midnight, when evening Ramadan prayers had finished.
British Prime Minister Theresa May said the attack was directed at Muslims and condemned it as "every bit as sickening" as deadly Islamist attacks that hit the country in recent months.