It's enough to keep a lot of folks from visiting London: the prices for a simple room are steep.
How steep?
In London, like many world capitals, a fairly bland room can cost several hundred dollars a night. Even a bed in dorm-style hostels can cost $50 USD/day.
Many people never get past these prices. They scratch London from their plans, and then look at those who do go with envy. They might even see them as snobs for talking about their trip(s) to London.
There's no need to be in that first group, and there's no reason to pay big prices in London, either.
London on a Tight Budget
Hostelworld searches for London are a good way to start planning a tightly budgeted trip. A typical query there will turn up dozens of hostels, such as the Astor Kensington, where dorm-style beds start at $22/night and you're a short walk from Gloucester Road tube stop (ages 18-35 only).
Hostellondon.com is another handy website for finding hostels in London. On-line booking by location, and travelers can rate the facilities listed.
Now a word about Bed and Breakfasts in Great Britain: Usually they are not fancy, antique-filled charmers. They are frequently budget lodgings, at least more frequently than in the United States.
Families rent out a rooms to supplement their incomes. Frequently, the toilet is down the hall. Picture albums and exercise equipment might be stored under your bed for the night.
These are wonderful places to both save money and mingle with the local culture. The folks who run them frequently know their neighborhoods and adjacent areas better than any guidebook author.
A good database for finding these budget gems is London B & B.
There is no "front desk" or concierge, but often good conversation and a beautiful breakfast are part of the deal. This site offers rooms in the $140-$190 range--figures that have risen sharply in recent years.
If you venture into the English countryside or to Scotland, costs often drop significantly.
If you're willing to pay a bit more, there are hotels that offer good value, too.
Another site with a range of price selections is Hotels London. You might find a few selections in the budget category for less than £50/night ($80 USD). There are also places found here to rest your head for hundreds or even thousands of dollars. One small consolation: you'll be pleased to know taxes are included in those quotes.
For those who want to stay at one of the world's great hotels, The Claridge Hotel offers Weekend Indulgence. You pay £299 ($488 USD) per night. Budget room? Hardly. But you could easily pay that amount these days for a fairly standard three-star room in London, Paris or New York. A one-time splurge to be sure, but one you're not likely to forget. Happily, breakfast is included in that rate.
No Place Like Home
If hotels and hostels aren't making you happy, why not rent someone's empty flat (apartment) Studios 92 offers rates in London that are sometimes competitive with budget hotels and hostels.
If you've got a larger group staying at least a week in London, check out The London Connection. They offer apartments in a variety of neighborhoods, and they're based in Ogden, Utah. They say that allows them to coordinate trips from both sides of the Atlantic.
Finally, if you don't have enough money for rent, how about a trade? Click HomeExchange.com and read about how they set up members with other members for the purpose of "swapping" houses on vacation. It's not for everyone, but if you can accept the terms, you can largely eliminate your lodging costs and make big-time trips affordable.
