Where To Stay In London On A Budget 2025 - Affordable Areas
Wondering where to stay in London first time budget?
It’s no secret that London is one of the most expensive cities in Europe.
To save money, consider staying in a hotel a little away from the main tourist spots and rely on the city’s excellent subway system to reach the main attractions.
Since there is not one area that covers all the tourist hotspots, most tourists end up using the Tube to explore the city fully.
This is the most practical and cost-effective option.
In this article, we highlight the most convenient areas where you can stay without spending a fortune on hotels.
We’ve chosen neighborhoods that are still relatively central, allowing you to make the most of your time in the city without long commute times.
That way, you can explore the best of London without sacrificing comfort or budget.
In summary: The best areas to stay in London first time budget are Kings Cross/Camden and St. Pancras, Hackney, Shoreditch, Bloomsbury and Paddington.
Kings Cross/Camden and St. Pancras is a combined area where you can easily access public transport and still find a good variety of cheap hotels. In my opinion, it is the best option for travellers on a budget.
Hackney is an area that offers even more affordable accommodation options but is located further away from the city centre.
Shoreditch is a trendy area where you can find affordable accommodation, but it has become a trendy area nowadays. The good thing about Shoreditch is that it has a great nightlife, making it the best option for younger travellers on a budget.
Bloomsbury is an area close to museums and universities. It is not a vibrant area, but you can find a good variety of affordable hotels here. Museums are free to enter in London, making them an ideal activity for those on a budget, and Bloomsbury is located close by.
Paddington is definitely not a cheap area, but you can find several affordable hotels just outside. The reason I added this central area to this list is because it has excellent access to parks. This makes it a great choice for families looking for an affordable hotel.
You can easily navigate to each area by clicking on the link or go directly to the overview of the best areas to stay in London first time on a budget.
The best areas to stay in London first time budget are:
1. Kings Cross/Camden and St. Pancras
One of the best budget areas to stay in London is the St Pancras area.
Here, you can find affordable hotel options and enjoy excellent transport links, thanks to the nearby St Pancras International train station.
While you may not be in the heart of the most popular tourist spots, major attractions like Big Ben and Buckingham Palace are just 20 minutes away by tube, offering great convenience without a hefty price tag.
Staying in this area can help you save significantly compared to other parts of the city.
2. Hackney
Hackney is a great area for budget travelers to stay in London due to its affordable accommodation options.
You can find plenty of cheap hotels, hostels, and short-term rentals and be well connected to the tube.
Hackney also has plenty of free or low-cost activities, such as exploring its markets, parks, and street art, making it a great place to enjoy the city without spending a fortune.
However, this area is located a little outside of the city center.
There are other areas we recommend that are better located.
But it’s harder to find something that fits your budget in these areas.
When it comes to affordable accommodation options, it’s really hard to beat Hackney.
You’ll be relying heavily on the tube, and when you know how to get around new cities using systems like the tube, then Hackney is definitely a great option for you.
3. Shoreditch
Shoreditch is a vibrant and up-and-coming neighbourhood located north of the Tower of London, popular with young people.
Once known for its grittiness, Shoreditch has undergone a major revitalization and now boasts numerous luxury hotels, though you can still find a variety of modern and affordable options between Old Street and Shoreditch High Street tube stations for around $100 a night – a bargain by London standards.
While you may have to change tube lines to reach the main attractions, Shoreditch offers a central location in a lively area that is perfect for those looking for an alternative, budget-friendly stay.
Keep in mind that Shoreditch has also become a trendy area, and it’s a little trickier to find something really affordable these days, as trendy hotels and exclusive boutiques are also located here.
Still, if you book in advance and do a little research, you can find something nice and cheap.
All while staying in a very fun area with plenty of nightlife to discover.
4. Bloomsbury
Bloomsbury, located south of St Pancras International train station, is home to the University of London, the British Museum and the Grant Museum of Zoology.
The area is popular with students who frequent the local pubs or study in one of the many libraries.
While Bloomsbury may not be as lively as nearby neighbourhoods, it offers a central location with excellent tube connections.
The Piccadilly line provides direct access to Buckingham Palace, while changing to the Jubilee line will quickly get you to Big Ben and Westminster Abbey.
You’ll also find a variety of affordable hotels, especially around the University of London and in the northern areas near St Pancras International.
5. Paddington
Paddington may not be the most budget-friendly area, as it has several luxury hotels, but you can still find some options with rooms for under $100 a night.
Paddington is located north of Hyde Park, a bit far from the main attractions, but it offers excellent access to several tube lines that can take you anywhere in the city.
One of the advantages of Paddington is the proximity to Hyde Park, ideal for a morning stroll, something that other recommended areas may not offer.
For a night out, you can easily take the Bakerloo line to Piccadilly Circus and explore Soho.
With a little searching, you can certainly find affordable accommodation in Paddington.
It’s a great area for those looking for a slightly quieter base and want good access to the tube as well as a great park.