London, the bustling capital of the United Kingdom, is one of the most visited cities in the world. With its rich history, iconic landmarks, and vibrant cultural scene, it’s no wonder that travelers flock here every year. From the towering presence of Big Ben to the sprawling beauty of Hyde Park, the city offers something for everyone. However, for backpackers and budget travelers, the high cost of accommodation can quickly become a hurdle. Hotels in central London often come with hefty price tags, leaving travelers scrambling to find more affordable alternatives.
But fear not! London is a city that caters to all types of travelers, and there’s a wealth of budget-friendly hotels and hostels that don’t compromise on comfort or quality. With the right research, you can find a place that offers everything you need for a pleasant stay—whether it’s a simple dormitory bed or a private room to unwind after a day of sightseeing. These accommodations often come with the added benefit of being located in central areas, making it easy to explore London’s top attractions without spending too much time or money on transport.
Whether you’re planning to wander the cobbled streets of Covent Garden, visit the historical landmarks of Westminster, or explore the artsy neighborhood of Shoreditch, you’ll find a variety of budget options that suit your needs. These hotels and hostels not only offer affordable prices, but they also provide a sense of community and an opportunity to meet like-minded travelers from around the world. So, if you’re looking to save money while still enjoying the comfort and convenience of a well-located hotel, read on for a list of London’s best budget-friendly accommodations.
1. The Walrus Bar and Hostel
Location: 172 Westminster Bridge Road, London, SE1 7RW
Price: Starting from £25 per night for a dormitory bed
Booking Options: Available through popular booking platforms like Hostelworld, Booking.com, and Agoda.
Nestled in the heart of London’s vibrant South Bank area, The Walrus Bar and Hostel offers a great blend of comfort and affordability. With its cozy dormitories and private rooms, it’s the ideal spot for backpackers looking to make the most out of their time in London. The hostel is just a short walk from landmarks such as the London Eye, the Houses of Parliament, and Westminster Abbey.
In addition to being budget-friendly, The Walrus has an in-house bar where you can meet other travelers and enjoy discounted drinks. The common areas are spacious, with a relaxed vibe perfect for socializing after a day of sightseeing.
Why Stay Here:
- Prime location near major tourist spots
- Friendly and social atmosphere
- Discounted drinks at the bar
- Daily breakfast included in the price
- Free Wi-Fi

2. Generator London
Location: 37 Tavistock Place, Bloomsbury, London, WC1H 9SE
Price: Starting from £20 per night for a dormitory bed
Booking Options: Available on Hostelworld, Booking.com, and Expedia.
Generator London is one of the largest and most well-known hostels in the city, with an excellent reputation for both affordability and fun. Located in Bloomsbury, a trendy and central neighborhood, this hostel is just a stone’s throw from King’s Cross Station, which makes it a convenient choice for those arriving by train.
This hostel offers a range of options, from private rooms to mixed dorms, ensuring that every backpacker can find the perfect accommodation for their needs. The Generator features modern amenities, a vibrant atmosphere, and plenty of opportunities to meet fellow travelers. Its on-site bar, café, and lounge areas are perfect for unwinding after a day of exploration.
Why Stay Here:
- Central location with easy access to public transport
- Large, clean rooms and excellent amenities
- Fun, youthful atmosphere with a social vibe
- On-site bar and café
- Frequent social events and activities for guests
3. Clink78 Hostel
Location: 78 King’s Cross Road, London, WC1X 9QG
Price: Starting from £22 per night for a dormitory bed
Booking Options: Available on Hostelworld, Booking.com, and Hotels.com.
Set in a former courthouse, Clink78 offers a truly unique experience for backpackers. This quirky hostel is located just a short walk from King’s Cross and St Pancras stations, providing easy access to the rest of the city and beyond. Whether you’re in a mixed dorm or opting for a private room, Clink78 delivers high-quality facilities at a budget-friendly price.
The hostel’s historical setting adds an extra layer of charm, with a bar that’s set in the old courtroom. The common room is a fantastic place to meet new people, and there are often fun events like pub crawls and movie nights. Clink78 is ideal for those who want to experience London while staying in a hostel with personality.
Why Stay Here:
- Unique setting inside a former courthouse
- Excellent location near transport links
- Friendly and welcoming atmosphere
- On-site bar and fun social events
- Free Wi-Fi and breakfast
4. The Qbic Hotel
Location: 42 Adler Street, London, E1 1EE
Price: Starting from £60 per night for a standard double room
Booking Options: Available on Booking.com, Agoda, and Expedia.
For those who prefer a more private hotel experience, The Qbic Hotel offers affordable rates without compromising on comfort. This stylish and modern hotel is located in the trendy East End of London, close to Brick Lane and Spitalfields Market. The hotel offers a variety of room types, including budget-friendly options for solo travelers and couples.
The rooms at The Qbic are minimalist but comfortable, with bright interiors and modern amenities. The hotel also has a café and bar for guests to relax, and the 24-hour front desk staff are always available to assist with any questions or travel arrangements.
Why Stay Here:
- Affordable rates for private rooms
- Stylish, modern design with comfortable amenities
- Located near trendy neighborhoods and attractions
- Great for solo travelers or couples
- Easy access to public transport

5. Pride of Paddington
Location: 1-3 Craven Road, London, W2 3BP
Price: Starting from £45 per night for a single room
Booking Options: Available on Hostelworld, Booking.com, and Hotels.com.
Located in the heart of Paddington, Pride of Paddington is a budget hotel with a warm, welcoming atmosphere. This charming hotel offers a range of room options, from single rooms to dormitories, and provides an excellent base for exploring London. The hotel is just a few minutes’ walk from Paddington Station, making it perfect for those arriving from Heathrow Airport or taking day trips out of the city.
Pride of Paddington is well-known for its friendly service and homely feel. It’s also attached to a lively pub where you can enjoy a delicious meal or grab a pint with fellow travelers. The hotel’s location gives guests easy access to famous spots like Hyde Park, Oxford Street, and the West End theatres.
Why Stay Here:
- Great location near Paddington Station
- Friendly service and homely atmosphere
- Attached to a lively pub with affordable meals
- Clean, comfortable rooms at budget prices
- Free Wi-Fi and breakfast
6. YHA London Central
Location: 14-22 Berners Street, Fitzrovia, London, W1T 3LP
Price: Starting from £23 per night for a dormitory bed
Booking Options: Available on YHA’s website, Hostelworld, and Booking.com.
Located in the heart of London’s West End, YHA London Central is a clean, modern, and budget-friendly option for backpackers. With easy access to Oxford Street, Covent Garden, and the British Museum, this hostel provides the perfect starting point for exploring the city’s top attractions.
YHA London Central is known for its efficient service, great facilities, and comfortable dorms and private rooms. There’s a café on-site where guests can grab a quick bite or coffee before heading out. The hostel also offers a relaxed atmosphere, making it easy to meet other travelers.
Why Stay Here:
- Central location in the West End
- High-quality facilities and modern amenities
- Friendly, welcoming staff
- On-site café for snacks and meals
- Free Wi-Fi and easy access to transport links
London might be known for its high living costs, but with the right accommodation choices, it’s still possible to experience the city without breaking your budget. These budget hotels and hostels provide great value for money, offering clean, comfortable spaces that allow backpackers to enjoy their time in London while meeting other like-minded travelers.
When booking your stay in London, it’s essential to explore a variety of online platforms like Hostelworld, Booking.com, and Agoda to ensure you get the best deals and availability for your travel dates. These platforms often offer a wide range of budget-friendly options, from affordable dormitory beds to private rooms with great amenities. Additionally, you can read reviews from other travelers to help you choose the best place based on your preferences, whether you’re seeking a lively social atmosphere, a quiet retreat, or a more unique, quirky experience.
London’s accommodation scene offers something for every type of backpacker. If you’re looking to meet new people and enjoy a vibrant social scene, many hostels have common areas, bars, and organized activities to bring guests together. On the other hand, if you prefer a little more privacy or a quieter experience, there are also budget hotels that offer comfort without the noise.
No matter what your preferences are, London has an abundance of budget-friendly choices to suit your needs. So, book ahead, pack your bags, and get ready for an unforgettable adventure in one of the world’s most iconic cities. Happy travels!