I am a Uk resident and pro Israeli in my views. I would like to visit israel next fall but have experienced such high hotel prices. any ideas for those on a budget.
I hope you're still planning your trip. I'm surprised no one has suggested the religious guesthouses for pilgrims. They're pretty cool places to stay in and are much cheaper than hotels. (You don't have to take a religious test to stay there!) Plus, they tend to be located very close to many of the sights in Israel you'll want to see. The youth hostels are also good choices. The ones I've stayed in in Israel have always been clean, well-appointed and friendly. You might find the Where to Stay section of the Jerusalem Insider's Guide helpful. They review hotels (from cheap to luxurious), hostels and pilgrim guesthouses in Jerusalem.