London is one of the most exciting cities in the world. With its historic landmarks, thriving culture, and endless attractions, it’s no wonder that millions of travelers flock here every year. But for backpackers, London can also feel like one of the most expensive destinations in Europe. Between the high cost of transportation, food, and sightseeing, finding a place to stay without blowing your budget is essential.

The good news? London offers plenty of Cheap Hotels and Accommodation perfectly suited for backpackers. Whether you prefer the social atmosphere of a hostel, the privacy of a budget hotel, or the independence of an apartment-style stay, London has something for you.

This guide covers the best cheap hotels and accommodation in London for backpackers, along with tips on where to stay, how to save money, and what to expect as a budget traveler.

Why London is Great for Backpackers

Backpacking in London offers a unique mix of experiences. Here’s why budget travelers love it:

• Cultural variety – From free museums to street performances, there’s always something to see and do.

• Free attractions – Many of London’s top sights (British Museum, Tate Modern, National Gallery) are free to enter.

• Public transport – The Tube, buses, and night buses make getting around affordable and easy.

• Backpacker community – Hostels and budget accommodations are buzzing with travelers from around the world.

• Day trips – Easy and cheap connections to nearby cities like Oxford, Brighton, or Cambridge.

The only challenge is accommodation costs—but with the right choices, you can stay cheaply and still enjoy everything London has to offer.

Best Areas in London for Backpackers

When choosing cheap accommodation in London, location matters. Some areas are better for budget travelers because they’re central, safe, and close to public transport.

1. King’s Cross & St. Pancras – Great for transport connections across the UK and Europe. Many budget hostels here.

2. Camden – Alternative, artsy vibe with cheap eats and a fun nightlife scene.

3. Shoreditch & East London – Trendy area with lots of budget hostels and bars.

4. Paddington & Bayswater – Close to Hyde Park and offers a good mix of budget hotels.

5. Southbank & Waterloo – Walking distance to many major attractions.

6. Greenwich – Cheaper options slightly outside central London, with good transport links.

Best Hostels in London for Backpackers

Hostels are often the best choice for backpackers—they’re cheap, social, and filled with like-minded travelers. Here are some of the top-rated cheap hostels in London:

1. YHA London St. Pancras

• Perfect for those arriving by train or Eurostar.

• Clean dorms and private rooms.

• Free Wi-Fi and communal lounge.

• Prices from around £25 per night.

2. Generator Hostel London (King’s Cross)

• Trendy design and vibrant atmosphere.

• On-site bar, café, and events for social travelers.

• Dorm beds starting at £20–25.

3. St. Christopher’s Inn (Camden & London Bridge)

• Famous backpacker chain with multiple London locations.

• Great for social travelers, with bars and live music.

• Discounts on food and drinks.

• Dorm beds from £22 per night.

4. Astor Museum Hostel (Bloomsbury)

• Budget-friendly hostel next to the British Museum.

• Cozy and social environment.

• Dorm beds start from £18–20.

5. Wombat’s City Hostel (Tower Hill)

• Modern, clean, and highly rated.

• Large common areas and a basement bar.

• Near Tower of London and Tower Bridge.

• Beds from £25 per night.

6. Clink78 (King’s Cross)

• Quirky hostel set in a former courthouse.

• Budget dorms and communal spaces.

• Great atmosphere for meeting other travelers.

• Prices start at £21 per night.

Best Cheap Hotels in London for Backpackers

If you prefer more privacy than a hostel, London also has cheap hotels and guesthouses perfect for backpackers.

1. Point A Hotels (Multiple Locations)

• Affordable, modern, and centrally located.

• Compact but clean rooms with essentials.

• Prices from £60 per night.

2. EasyHotel (Victoria, Paddington, Old Street)

• Ultra-budget option with no-frills rooms.

• Some rooms don’t have windows, but prices are unbeatable.

• From £45 per night.

3. Z Hotels (Soho, Shoreditch, Victoria)

• Budget chain with stylish small rooms.

• Free cheese and wine in the evenings.

• Rooms from £60–70 per night.

4. The Zedwell Piccadilly

• Capsule-style hotel near Piccadilly Circus.

• Minimalist but excellent location.

• Rooms from £65 per night.

5. Ibis Budget Hotels (Whitechapel, Hounslow, etc.)

• Simple, clean, budget-friendly.

• Great for backpackers wanting hotel comfort at hostel prices.

• From £55 per night.

Alternatives: Cheap Accommodation Beyond Hotels

Backpackers looking for flexibility can also consider:

• Airbnb rooms – Private rooms in shared apartments often cheaper than hotels.

• University halls – Available during summer months for very cheap rates.

• Couchsurfing – Free stays with locals, great for cultural exchange.

• Work-exchange programs – Platforms like Workaway and Worldpackers let you trade work for accommodation.

Tips for Saving Money on Accommodation in London

1. Book Early – Prices rise closer to travel dates.

2. Travel Off-Peak – January–March and October–November are cheaper.

3. Stay in Zones 2–3 – Slightly outside central London but with fast Tube access.

4. Look for Free Breakfast – Hostels often include it, saving you £5–10 daily.

5. Use Loyalty Programs – Many chains offer discounts and free nights.

6. Check Hostelworld & Booking.com – Compare deals before booking.

7. Stay Longer in One Place – Weekly rates can be cheaper than nightly stays.

Average Backpacker Accommodation Costs in London

• Hostel dorm bed: £18–30 per night

• Budget hotel: £45–70 per night

• Airbnb private room: £40–60 per night

• Couchsurfing: Free

For a backpacker, planning around £25–35 per night for hostels or £50–60 for hotels is realistic.

Backpacker-Friendly Free Things to Do in London

Saving money on accommodation means you can enjoy more of London’s attractions. Luckily, many are free!

• Museums & Galleries: British Museum, National Gallery, Tate Modern.

• Markets: Camden Market, Borough Market, Portobello Road.

• Parks: Hyde Park, Regent’s Park, Hampstead Heath.

• Landmarks: Changing of the Guard at Buckingham Palace, Southbank walks.

Final Thoughts

London doesn’t have to break the bank for backpackers. With its wide selection of cheap hotels, budget hostels, and alternative accommodation, you can enjoy this incredible city while sticking to your budget.

For social backpackers, hostels like Generator, Wombat’s, and St. Christopher’s Inn are perfect. For those who want privacy, Point A Hotels and EasyHotel are affordable alternatives. And for the most adventurous, Couchsurfing or summer university halls provide even more options.

The key is to book early, choose the right neighborhood, and take advantage of free attractions. That way, you’ll experience London’s magic without overspending.

Whether it’s your first time in the city or a stop on your European backpacking journey, London has plenty of cheap and welcoming accommodation options for every kind of traveler.