Accomodation is not cheap in phuket!!! although out of season you can score some really good deals!
I found a right bargain though, Capricorn village is a couple of blocks from the beach in Patong. They have little bungalows for 450baht(£9) for a single. The rooms are great, with power shower and aircon and sky tv!
I stayed here again in 2005, and loved it, the staff (Pam - youre a legend) are friendly, and just damn good fun!
Its a perfect location, clean, and will always stay here. The price in September had gone up to 500baht for a room! still a bargain for location and facilities and good ol' Pam!!!!
I will not stay anywhere else!