Cheap, safe London hotels on a budget!

The OP is looking for London accommodations at $85/night for 2 persons.

A small comment on the general level of London accommodation costs is relevant to the question asked:

The facts available to one traveler are that typical 2009 London accommodations costs (stated in dollars and exchange rates have changed since 2009) are around:

$225/night - double room at mid range tour hotel

$120/night - double room at budget hotel/B&B

$40/night/per person - cheapest sleepable hostel bunk

Two possibilities:

1) Priceline Name Your Own Price - check biddingfortravel.com or betterbidding.com for recent winning bids and tips on bidding.

2) EasyHotel (have never stayed there, but they have rooms within your budget)

I second the comment by Laura on checking out betterbidding.com for priceline name your own price, as well as for hotwire if you are more particular about the place. They can help you identify the hotel options.
We just returned from London (and Ireland) a couple weeks ago. Used betterbidding to get us 4* Marriott Maida Vale for 6 nights for $840 total (no breakfast) about 3 blocks from kilburn park underground station, and 1/2 block from bus stop.
We were 90% certain it would be that hotel, or Holiday Inn Camden Lock. Both decent hotels and fully non-smoking.

Kerriann,

First of all, forget the hostel option. Some very good B&Bs are located in the King's Cross/St Pancras area, on Argyle street and Argyle Square, which is where I stay in London, one reason it's right near the King's Cross Tube station. Some the B&Bs in that area can be gotten for 35 pounds for a single.

Kerriann,

You might have a look at www.cartrefhouse.co.uk to see if it meets your criteria and price range. It is a B&B Hotel, located in a nice area and the owners are great. The rooms aren't luxurious but are very comfortable.

Happy travels!

Good ole Etap has a hotel in Barking (tube's a five minute walk plus twenty ? minute ride). Room for two is 47gbp or about seventy bucks. Breakfast is extra and it's not worth it. Just coffe is ok, but there's a bakery on the way to the tube station.

Kerriann, I highly recommend two B&B networks, "London Home to Home" and "At Home in London". I just checked out their sites, and found that the Home to Home place we stayed at in 2005, Bridget and Jerry's house in Chiswick, has double/twin rooms for 58 GBP including English breakfast, which should work for your budget. The home is about 2 minutes' walk from the Chiswick Park tube stop. There are other homes in the network for 66 pounds, which might be just over your budget - but if you are getting breakfast too then it might actually be less expensive. Feel free to PM me if you'd like more information. Good luck and have a great trip!

I just booked at Manna House for two weeks from now, a small B&B that is near Greenwich. It had wonderful reviews on tripadvisor and is 55 GBP a night (about $83 with the current exchange rate).. and there's a discount if you stay a week I believe. They said it is a seven-ten min walk to the train station and a 20 min ride to the city center. If you're interested I can let you know how it went when I get back.

Thanks to everyone so much for your help! There's some great suggestions and I'm looking into all of them. I can't wait!!!

I have used Priceline for London twice with great results. Got Hitlon Metropole (4 stars, GREAT hotel, next to underground) for $100/night (2 queen beds, you could share the room). Check biddingfortravel.com for tips on bidding. I am sure you can get lower level hotels for less $. Check the ratings of the priceline hotels (from bidding for travel) in tripadvisor before bidding.

I just got back from 3 weeks in England. Stayed for one night at the Howard Winchester Hotel near St. Pancras/Kings Cross. 50 pounds a night for a single in a double room. Typical b&b but has been remodeled, it was clean, good breakfast, good service.

I would agree with Fred on the B+B's just outside Kings Cross/St Pancras on Argyle St. There is a good selection and with tripadvisor you can lock in on a good one. They aren't luxury but can be clean, priced well and located well. I wouldn't wander by myself at 2 am but with basic precautions one should be good.