I am looking for lodging for my spouse and me. We want central and clean but no more than 80 pounds/night, if possible. We prefer B & B's to hostels but hostels with family rooms are an option. I know some of the places on Gower St. are awful, but probably some are fine. Any suggestions, there or elsewhere central? (We will be arriving 8 a.m. after taking a night train, so want to be able to leave off our luggage--a factor in choosing lodging, perhaps.)
Peruse the airbnb website. This site is also good.
http://www.londonhometohome.com/ As far as central really no need to do be so "central". Simply stay within tube zones 1 & 2 and you'll be able to access all "the" sites easily. Very walkable city as well. Are you arriving at Paddington, Victoria or Waterloo Station? Vancouver Studio apartments near Paddington are fine. Luna and Simone is popular and rated highly by this forum's posters. Near Victoria Station.
You should check with the London School of Economics. They rent spare dorm rooms and apartments to tourists. The site is below. Just be aware that sometimes the site seems to have problems with certain web browsers (Internet Explorer espeically) and will say that nothing is available- when it really is. If it says that nothing is available, try emailing or calling. Their rates are very reasonable and you get ensuite, and either a kitchenett or kitchen priviledges, and accress to student facilities like the laundry room and 'lounge' (read TV and game room). www.lsevacations.co.uk/
I second the London Home to Home suggestion, and you might also try AtHomeInLondon.co.uk; we had a very nice stay in Cornwall Gardens, a few minutes from the Gloucester Road tube stop. That lodging is showing 82 GBP per night for two people. Enjoy!
If you are staying 4 or more nights try VRBO.com, we found an apartment in the Westminster area that was a great place to stay, the Regency is the name if I recall correctly.