Well-liked university in part of London (7)
I believe the answer is:
popular
'well-liked' is the definition.
(similar in meaning)
'university in part of london' is the wordplay.
'university' becomes 'U' (abbreviation for university).
'in' indicates putting letters inside.
'part of london' becomes 'Poplar' (district of East London).
'u' going within 'poplar' is 'POPULAR'.
(Other definitions for popular that I've seen before include "Widely liked" , "Liked or admired by many" , "Pleasing to many" , "appealing to the public" , "Widely admired" .)