Travel at the last minute. Although there is a measure of risk involved, there are some great deals to be had if you hold off booking your London accommodations till the last minute. If you are fairly flexible, you can get inexpensive nightly rates–even free nights–in some hotels if they are eager to fill up empty rooms. A good place to start is researching major booking sites.
Consider a youth hostel network, which is a great way to travel London on a budget. Youth Hostels Association (YHA) is Britain's youth hostelling organization, offering more than 200 hostels in different cities. There are seven hostels in central London, where it will cost you as little as £17.95 per person for a bunk bed in a shared dormitory. Some hostels offer single and double bed rooms, but availability is limited, so you would do well to book early. Keep in mind, however, that Youth hostels are geared toward young people, and can thus get pretty loud and rowdy.
Look up accommodations that are far from London's city center. The closer the accommodations are to the city center with its numerous attractions and comprehensive public transport system, the more expensive they will be.
House-swap with a Londoner. If you own your own home, house-swapping can give you the opportunity to spend your vacation in a flat or a whole house at no charge. This works out especially well if you and/or your swap partner live at a tourist destination.
Share a flat if you are staying in London for more than a week. A number of websites have listings of short-term accommodations that you can browse to find a room in a flat to share. Londoners advertise for rooms that are available for anywhere from a week to six months. It is not cheap to rent in London–a basic room can cost up to £120 a week. However, this is still cheaper than a hotel.
Go camping! The Greater London area boasts several campsites that are within easy distance to London's city center. These are, by far, the cheapest of all paid-for accommodations, particularly out-of-season
