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Budget London accommodation

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We're arriving Heathrow 19 Sept and would like to spend three nights in or near London. Would we be better off finding something out of of the city (and close to Heathrow) and travel in each day by the tube or finding something closer to the city?
I stayed in Knightsbridge many years ago and found that a great location but think it might be out of our price range these days.
Any advice would be very much appreciated.

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