oneandone offer .co.uk domains at 1.99+vat per year and hosting for 4.99+vat per month.
So for just over 6 pounds a month you get your own domain name, 500mb disk space, 3gb traffic per month, 100 different pop3 email accounts, virus scanning on 1 pop3 box, cgi library, unlimited ftp, automatic backups.
I use this package and never had a problem.
You can also add more .co.uk domains at 1.99+vat per year and share same hosting area for free, pointing different domains at different folders in your main website so they appear as completely different sites.
I have 10 different domains sharing one 4.99 hosting plan!
Nicholas at The Coding Area also uses this package.
The only downside is no PHP (this would cost extra 4+vat per month)
I would avoid any cheap or free hosting companies as there is always a catch, like no hotlinking of graphics, no ftp, servers always going down, e.t.c.
If your mansion house needs haunting, just call Rentaghost!