Where To Stay On A Budget In London - 4 Affordable Options
Wondering where to stay on a budget in London?
Having visited England’s Capital at least five times, I’m pretty confident answering that question for you.
It’s no secret that London is famous for its high prices, but with smart planning, you can enjoy the city’s top sights without breaking the bank.
From neighborhoods with excellent tube connections to areas known for affordable accommodation and local vibes, we’ll guide you through the best budget places to stay.
I’ll tell you everything you need to know in this relatively short, but most importantly straight-forward article.
From iconic landmarks like the Tower of London and Buckingham Palace to world-class museums and charming neighborhoods, there’s so much to see and do in this vibrant city, all at little or no cost.
Having explored London on a budget myself, I can tell you that there are plenty of areas offering affordable accommodation and delicious eats, perfect for those looking to keep expenses low.
And with London’s excellent metro system, getting around the city is a breeze, helping you make the most of your time and travel smart.
Whether you’re a first-time visitor or returning for more, there are plenty of budget-friendly options to ensure you experience the best of London without overspending.
Each area comes with its own unique advantages and drawbacks, which we’ve conveniently summarized after each section.
Comparing those summarized sections will definitely come in handy to pick the area that suits you the most.
Let’s dive into our top recommendations!
What are the best areas to stay in London on a budget?
The best areas to stay in London on a budget are King’s Cross/St. Pancras, Southwark, Hammersmith and Shoreditch.
Staying in London’s tourist epicenter is simply expensive, so it’s a good idea to choose an area that is close to the heart of the city and has good connections to the tube.
King’s Cross is a great choice as it is the area where London’s main train station is located.
From here, there is great connection to airports, railways, and tube lines.
Areas such as Southwark, Hammersmith, and Shoreditch are budget areas on the outskirts of the tourist epicenter and with excellent connections to the tube lines.
In the following paragraph, you can find an overview of each recommended neighborhood with a brief description. Click on the neighborhood and you will go directly to that part of the article.
King’s Cross/St. Pancras – There’s no better area for connectivity. King’s Cross has direct access to six London Underground lines and multiple train services, including the Eurostar. You can also find plenty of affordable hotels here. Getting to the city’s highlights by tube is a breeze when you stay here, making it one of the best options to stay if you’re travelling on a budget.
Perfect for: Public transport connections.
Southwark – This area is located just across the Thames from several central attractions. You have direct access to the Jubilee Line, making it easy to get to places like the West End and Westminster.
Perfect for: Good access to several attractions and Borough Market (foodie heaven).
Hammersmith – This area is located on the Piccadilly, District, and Hammersmith & City tube lines. That’s why Hammersmith offers great connectivity to central London attractions at affordable prices. You’re just a few stops away from attractions like Hyde Park and the Natural History Museum and can find plenty of affordable restaurants and pubs near your hotel.
Perfect for: Top options for those looking for a quieter experience, especially for families.
Shoreditch – This area is known for its hip vibe and creative scene, and it also has budget accommodation options, especially for younger travelers. It’s located near Liverpool Street station on the Central line, making it easy to get to both east and central London. Shoreditch has fantastic nightlife, street art, and local markets that make it a fun area to explore on a budget.
Perfect for: Local nightlife, especially for young travelers.
The best areas to stay in London on a budget are:
1. King’s Cross/St. Pancras
If you’re looking for a budget area to stay in London, King’s Cross is one of the best options.
This area is home to St Pancras International Train Station and, as with many European cities, there are affordable hotels around the main train station – London is no exception.
With King’s Cross as your base, you’ll have excellent connections to the tube, trains and buses.
If you’re arriving from mainland Europe by train, St Pancras is the first place you’ll set foot in London.
If you’re flying, your arrival point depends on the airline – for example, Ryanair flights land at Stansted Airport, from where a direct train will take you to St Pancras.
The ease of getting to King’s Cross on arrival, combined with quick access to the main tourist sites, makes it an ideal base for exploring London.
London’s sights are fairly spread out, so you’ll probably be relying on the tube regardless of where you stay.
While King’s Cross offers excellent convenience, there are a few downsides to be aware of.
Firstly, as it’s a major transit hub, it’s not a place with much nightlife and the area around the station can get a little fishy after dark.
It’s also a busy and convenient area rather than a charming one – it can be quite chaotic during the day, but at that time, you’ll probably be exploring the city anyway.
When you’re on a tight budget, it’s all about finding a balance between convenience and small compromises.
The fantastic transport links here make it easy to overlook King’s Cross’ few drawbacks.
However, if you’re looking for a neighbourhood with more character, tranquillity or an active nightlife, one of the other areas on our list might be a better choice.
2. Southwark
Southwark is situated on the south bank of the River Thames, offering easy walking access to several major attractions.
From here, you can walk to iconic landmarks like the Tate Modern, while the Jubilee Line conveniently connects you to other highlights like Buckingham Palace.
Nearby is Waterloo Station, another key London train station, where many tour operators offer day trips to popular sites like Stonehenge.
Strolling towards London Bridge, you’ll pass Borough Market, a vibrant and popular food market that’s a must-visit for any foodie.
While Southwark may not have as many tube lines as other areas, it’s still well-served by two very convenient lines, making it easy to get around.
It’s also a little quieter compared to other central neighborhoods.
Finding an affordable hotel is usually manageable, though riverside options can be more expensive.
For better value, look for accommodation a little further away from the waterfront; This way, you can enjoy all that Southwark has to offer without the higher cost of a river view.
Please note that getting to and from Southwark is not as straightforward as it is from King’s Cross when it comes to airport connections.
While you can get to Heathrow, Gatwick, and other airports from here, you may need to make a transfer or two, which can add to travel time and hassle compared to King’s Cross, where direct connections are more readily available.
So, if easy access to the airport is a priority, this is something to consider before booking your stay in Southwark.
3. Hammersmith
During our first two visits to London, we stayed near Hammersmith, and the main reason was its proximity to Hyde Park.
There’s something refreshing about a morning stroll through the park, especially in a city as busy as London.
Hammersmith also offers direct access to the Piccadilly Line, which takes you to several major attractions and into the heart of the city.
Additionally, the Piccadilly Line provides a direct route to Heathrow Airport, a great convenience for travelers entering or leaving London.
Being a little further away from the main tourist spots, Hammersmith is more affordable, both for accommodation and meals.
It’s much easier to find something that fits your budget in this area, whether it’s a hotel room, restaurant, or pub.
While it’s not right in the center of London, Hammersmith is a short tube ride away from major attractions like the Natural History Museum, Hyde Park, and the West End.
However, you will still need to travel a bit to get to the sights, which is something to keep in mind.
The areas mentioned above offer a better location for being able to walk to various attractions.
That said, Hammersmith has a quieter, more residential feel, making it a great choice for families who want a more relaxed base to explore the city.
4. Shoreditch
The last area we recommend is Shoreditch, a vibrant and artistic neighbourhood known for its youthful energy and lively nightlife.
If you’re a young traveller looking for affordable accommodation and a place to party in the evenings, Shoreditch could be the perfect choice.
The area is well-connected to central London via the Overground and nearby tube stations, giving you easy access to top attractions like the Tower of London, St Paul’s Cathedral and the West End.
Plus, you’re just steps away from local favourites like Brick Lane, Spitalfields Market and Old Street.
Shoreditch is also conveniently located near Liverpool Street Station, which offers direct connections to Stansted Airport – a key arrival point if you’re flying with Ryanair.
The area itself is incredibly walkable, with charming streets to explore, lively markets, boutique shops and cosy cafes to discover.
However, keep in mind that Shoreditch’s popularity and trendy vibe can make it a bit more expensive, especially when it comes to restaurants and accommodation.
While you can still find affordable options, you may find that prices here are higher than in other parts of London, especially in the more sought-after areas.
About the author
My name is Joost, a travel enthusiast and a true foodie with a deep passion for exploring new places and cultures. Since 2017, I’ve been living abroad, immersing myself in diverse communities and cuisines. I spent four unforgettable years in Southeast Asia, where I fell in love with its vibrant street food, unique history, and beautiful landscapes. Since 2021, I’ve been calling South America home, continuing my journey of discovery and sharing tips to help fellow travelers make the most of their adventures.