Rev Nathan McGuire from Streatham Baptist Church told Premier people in the community were in "shock and disbelief" after a terrorist stabbed two people 400 yards from the church.
Sudesh Amman, 20, was shot dead by police on Streatham High Road after stabbing people in what police called an Islamist-related terrorist incident on Sunday afternoon.
He had been released from prison about a week ago after serving half of a sentence for terror offences, and was under police surveillance.
Three people were injured but none is in a life-threatening condition.
"There was a lot of shock and disbelief when I was speaking to people yesterday." Rev McGuire told Premier.
"Quite a lot of young people I spoke to referenced the fact that a lot of this is normalized for them. So there's just sort of a non-response to it. Some residents are obviously deeply, deeply concerned.
"For a lot of our communities here in Streatham being such a diverse community a lot of communities are scared of reprisals and certain factions and groups within wider communities nationally are whipping up hate
and the fear of what that might look like in the coming days.
"We are praying for reconciliation for peace, and for us to be coming together as local communities."
The Mayor of London said he's angry that there have been two terror attacks in a matter of months committed by men recently released from prison.
Sadiq Khan said questions need to be asked about what's being done to rehabilitate Islamist extremists behind bars.