There are a very large amount of people and companies offering web design services and therefore it should not be difficult to bag yourself a bargain. There is a market for no frills web design where you should be able to obtain a website for under a £100.
Web design companies are in a very competitive market and some offer some great deals at various times of the year, especially around christmas time
People who are just starting out in a career building custom design websites will often offer their services at a very reasonable rate, basically to build up a portfolio. Once they have established themselves they then tend to increase the amount they charge. Therefore you need to get in quick while there offering a professional service for an unprofessional fee.
I have even heard about one person who for a very short period of time was building websites for free! This is an extreme case though.
A colleague of mine called Peter was looking to have an internet prescence for his small business a number of years ago. He did not have a huge budget, however was looking for a person or company to create him a professional looking website which would be search engine friendly at an affordable price.
He tried looking in many areas including yellow pages, ebay, bargain pages and also by asking his friends, to see if they knew of anybody.
He also searched in Google for the search term, very cheap website design in Birmingham. There were many different websites listed, after a few phone calls, he managed to find a very good deal.
There are plenty of people offering quality website design services, who do not charge huge fees, just keep looking and you are sure to find them.