As a middle-aged Brit who has spent years between travels bouncing in and out of London for work, and has now lived in this city full-time for 5 years, I get asked one question constantly…
“Where is the best area to stay in London?”
The honest answer is that it depends entirely on your trip!
First time in the city? Theatre mad? Here for museums, nightlife, or a cheap base that still feels safe and central?
Different neighbourhoods shine for different types of traveller.
So below, I have broken things down into 9 categories, with 1 – 2 London areas for each, plus affordable accommodation suggestions you can easily reserve for a more budget-minded London stay.
Prices shift all the time in this city of course, but these recommendation are generally good value for the location, especially in a city as notoriously expensive as the English capital!
So let’s dig in and find your perfect patch of London….
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#1 Best Area for First Timers: Covent Garden & South Bank
If it is your first time in London, staying central makes life so much easier.
You want to be able to walk to big hitters like Trafalgar Square, the West End, the Thames and a couple of major museums without spending half your day on the Tube.
Covent Garden is ideal for that.
You are right in the West End with street performers, boutiques, the covered market and theatres all on your doorstep.
The ambience is lively but not as in-your-face as Leicester Square.
Affordable stays near Covent Garden…
- Z Hotel Covent Garden – compact rooms, but a superb location just off the piazza, a short walk from Covent Garden and Leicester Square stations.
- The Z Hotel City – usually a bit cheaper and still walkable to Covent Garden and St Paul’s if you do not mind a 10–15 minute stroll.
Across the river, the South Bank around Waterloo and Blackfriars is another top spot for first timers.
You get views of Big Ben, the London Eye and the Thames, plus an easy walk to Borough Market and Tate Modern.
Good value options near the South Bank…
- ibis London Blackfriars – modern, simple rooms a short walk from the South Bank and Waterloo, with strong public transport links.
- Hampton by Hilton London Waterloo – a reliable mid-range choice with breakfast often included, just 5 minutes from Waterloo station.
#2 Best for Hipster Vibes & Street Art: Shoreditch & Bethnal Green
If you like independent coffee shops, street art, vintage shops and a bit of grit with your flat white, Shoreditch and nearby Bethnal Green are your places.
I’ve always lived in east London and absolutely love it, so it comes highly recommended!
Shoreditch is full of creative energy, from Brick Lane’s curry houses and Spitalfields markets, to the bars and galleries around Hoxton Square.
It is well connected to Liverpool Street, so you can get across London quickly too.
Affordable Shoreditch bases…
- Point A Hotel London Shoreditch – compact but clean rooms only a short walk from Old Street and Shoreditch High Street, perfect if you will be out exploring most of the time.
Bethnal Green is slightly more local, but still very cool, with canal walks, independent bakeries and quick Tube access to the West End.
It also tends to be a touch cheaper than staying right in Shoreditch.
Bethnal Green budget friendly choices…
- Four Points Flex by Sheraton London Shoreditch East – a modern, good value hotel close to Bethnal Green Underground, handy for exploring both the East End and central London.
#3 Best for Proximity to Big Attractions: Westminster & South Bank
If ticking off landmarks is the priority, staying near Westminster or the South Bank keeps you within walking distance of the Houses of Parliament, Westminster Abbey, the London Eye and the river.
It saves both time and Tube fares!
On the Westminster side, you are in postcard London territory, with white stone buildings, red buses and Big Ben looming over everything.
Central and wallet friendly stays near Westminster…
- Point A Hotel London Westminster – a budget friendly option near Lambeth North and Waterloo, walking distance from the London Eye, South Bank and Westminster Bridge. Rooms are tiny but the location is hard to beat for the price.
For a broader sweep of attractions, I really like the cultural South Bank corridor, where you can stroll the river past the London Eye, Tate Modern, Shakespeare’s Globe and Borough Market.
Good value South Bank choices:
- ibis London Blackfriars – again, this works brilliantly for a sightseeing base, with easy access to both the South Bank and the City.
- Hampton by Hilton London Waterloo – ideal if you want fast trains out to other parts of the UK as well as central attractions.
#4 Best for Museum Lovers & Culture Queens: South Kensington & Bloomsbury
If your happy place is wandering galleries and reading plaques, base yourself near London’s museum clusters.
South Kensington is classic for this – you have the Natural History Museum, Science Museum and the V&A all within a few minutes’ walk, plus leaf lined streets and plenty of cafes for post exhibit cake.
It’s not a cheap part of town, but there are some value options nearby.
Museum-friendly South Ken hotels…
- ibis Styles London Gloucester Road – a stylish, good value option right by Gloucester Road station, a short walk from the museum row.
If you are more British Museum than dinosaur skeletons, then more central Bloomsbury is your area.
It has a slightly academic feel thanks to the universities and bookshops, and it is also brilliant for walking to the West End.
Bloomsbury budget accommodation picks…
- President Hotel – solid mid-range hotel overlooking Russell Square, with Tube access straight to Heathrow on the Piccadilly line and easy walks to the British Museum.
- Generator London – a lively hostel near Russell Square with both dorms and private rooms, ideal if you want social vibes and low costs.
#5 Best for Theatre Buffs & West End Vibes: Soho & Covent Garden
If your idea of a perfect London night is a matinée, a pre-show dinner and then a musical, you want to be able to walk home from the theatre rather than fight for a late Tube, Soho and Covent Garden are perfect for this.
Soho is buzzy, slightly chaotic, but full of bars, restaurants and small venues.
You will also be central for shows around Shaftesbury Avenue and Piccadilly.
Affordable Soho stays…
- Z Hotel Soho – compact rooms but a killer location in the heart of Soho, ideal for theatre trips.
- Zedwell Hotel Piccadilly Circus – a pod-style hotel that focuses on sleep, right by Piccadilly Circus, so you are minutes from multiple theatres.
Covent Garden also works brilliantly for theatre fans, with the Royal Opera House on the square and many West End theatres an easy walk away.
It’s also a lovely spot for shopping, with the historic marketplace forming the centre of the action and street performers a go-go.
Good value Covent Garden stays…
- Z Hotel Covent Garden – for theatre, shopping and dining all crammed into one small area, it is hard to beat.
#6 Best for Afternoon Tea & Classic London Charm: Marylebone & Mayfair
If you are here to lean into London’s slightly posher side, then book yourself into Marylebone or Mayfair.
You will still be central, but the vibe is more polished than party.
Marylebone feels like a village in the city, with pretty terraces, independent shops and easy walks to Regent’s Park and Oxford Street.
Nice, not too OTT Marylebone option…
- Z Hotel Gloucester Place – a compact boutique hotel housed in Georgian townhouses, walking distance from Marylebone High Street, Regent’s Park and Oxford Street.
Mayfair is where you stay if you want to be near the truly fancy afternoon tea spots like Claridge’s and the Ritz, as well as designer shopping along Bond Street.
It is not cheap, but you can sometimes find mid-range deals compared with the ultra luxe neighbours.
Good value stays for Mayfair…
- Washington Mayfair Hotel – a classic 4* property on Curzon Street, handy for Green Park, Hyde Park and the West End.
#7 Best for Nightlife: Soho & Shoreditch
If you are planning late nights, you want somewhere that feels safe walking back in the small hours and has taxis and night buses in good supply.
Soho is the obvious choice, with bars, LGBTQ+ venues, live music and late restaurants aplenty.
Staying right in the middle lets you hop between spots without worrying about last trains.
Nightlife friendly stays in Soho…
- Z Hotel Soho – central, walkable to pretty much everywhere in the West End, and often cheaper than the big international chains nearby.
- Zedwell Capsule Hotel Piccadilly Circus – ultra central, pod style and usually great value for the location, ideal if you just need a safe bed after a night out.
Over in East London, Shoreditch has a more alternative nightlife scene with craft beer bars, rooftop spots and late cafes.
Affordable bases for East London nights out…
- Point A Hotel London Shoreditch – close to Liverpool Street and Old Street, so you can hop between Shoreditch, the City and back to bed easily.
#8 Best off the Beaten Track: Greenwich & Peckham
If you have done the main sights before and want more local feeling areas, hop slightly further out.
Not only will this usually save money, but you’ll also see a different side of the city.
Greenwich, in South East London, feels almost like a separate small town, with the historic market, the Cutty Sark, Greenwich Park and the Royal Observatory all within walking distance.
It’s got a great market, some iconic pubs like the Trafalgar Tavern and plenty of history and culture lovers.
Riverboats into central London make the journey there part of the fun too!
Cheaper Greenwich accommodation options…
- ibis London Greenwich – central in Greenwich with easy access to attractions and the DLR for connections into the city.
- Staycity Aparthotels London Greenwich High Road – aparthotel-style studios with kitchenettes, perfect if you want to self cater and feel a bit more like a local.
Peckham, also in South London, has shifted from under the radar to quirkily cool in the last decade, with rooftop bars, creative spaces and a strong food scene creeping out.
It is a good choice if you want something more residential, but still want to be connected to a progressive and exciting London scene.
Peckham good value choices…
- The Victoria Inn – a boutique pub with rooms near Peckham Rye, combining a proper British pub atmosphere downstairs with stylish bedrooms upstairs.
#9 Best for Budget Central Stays: Kings Cross, Earl’s Court
London will happily eat your budget before you have even ordered brunch, so if you want to keep costs down while still being central, these are the areas I usually recommend…
Kings Cross and St Pancras are brilliant for transport, with direct trains to Gatwick, Heathrow (via the Tube) and the Eurostar to Paris and beyond.
Staying nearby keeps things simple, especially if you are catching early trains.
Budget-friendly bases near Kings X St Pancras…
- Point A Hotel London Kings Cross – St Pancras – compact rooms, but a short walk from both major stations and an easy Tube ride to pretty much everywhere.
- Generator London – again, this hostel sits between Kings Cross and Russell Square, great for those who do not mind dorms or small private rooms in exchange for lower prices.
Earl’s Court in West London is another long standing budget favourite.
The neighbourhood feels residential and safe, with plenty of cheap eats, and the Piccadilly line runs straight to Heathrow and into the West End.
Good value Earl’s Court stays…
- ibis Styles London Gloucester Road – technically more South Kensington, but often priced well and a great compromise between affordability and proximity to big sights.
If you are really trying to squeeze every pound, the new capsule style options can be surprisingly cost effective.
Ultra budget central choice:
- Zedwell Capsule Hotel Piccadilly Circus – pods rather than full hotel rooms, but you cannot argue with the location to price ratio for central London.
Final Tips from a London Loving Local
A few practical things to round things off…
- Prioritise location over room size. In London, you are paying for postcode as much as square metres. A smaller room in the right neighbourhood will usually give you a better experience than a big room miles out.
- Check your nearest Tube line. For sightseeing, being near the Piccadilly, Jubilee, Central or Northern lines is particularly handy.
- Read recent reviews on Booking.com and elsewhere. Properties change quickly in London, so always skim the latest comments before you commit.
- Think about your arrival and departure. If you are flying in and out of Heathrow, areas on the Elizabeth or Piccadilly line, like Earl’s Court, Paddington or Kings Cross, are easy. If you are using Eurostar, the Kings Cross St Pancras area is definitely your best friend.
The key thing to remember is to pick the neighbourhood that matches your travel personality, and London suddenly feels smaller, friendlier and far easier to explore!
Once you have cracked that, the rest of the city opens up like a very big, very busy playground… one that gets addictive!
Enjoy!
Mini Travel Guide to London
Getting There
I recommend Skyscanner for getting the best flights deals and Trainline for booking trains or coaches to and around the UK, including Eurostar.
Best eSIM for London
Holafly offer unlimited data eSIMs for the UK that are perfect for staying connected across the country.
Travel Insurance
World Nomads offer simple and flexible travel insurance. Buy at home or while travelling and claim online from anywhere in the world.
Travel Money
England use the British Pound (GBP).
I always travel with my Wise card, which makes spending abroad cheaper with real exchange rates and no sneaky transaction or ATM fees – grab yours here.
Luggage Storage
Store your luggage for less in London with LuggageHero.
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