Thanks to Bob the Saver on MSE for the info.
£9 double rooms at the Tune hotel due to open the end of this month (aug 2010) for next year May-Sept 2011. The hotel is near a lot of the attractions such as The Eye, Big Ben,the Houses of Parliament etc. Beside Lambeth North Tube and 5 mins walk from Waterloo station. Currently they have Sat availability on a lot of dates as well, but going fast. Very basic new hotel, but you can have add on extras such as towels, freeview etc.