There's a difference between "registering with forwarding" (the going rate is around £3 a year) and "full hosting".
I use Fasthosts as "forwarder registrar" for a batch of domains. I have no webspace at Fasthosts: they all forward to the same webspace where I keep the various "sites". With stealth forwarding, it's not apparent to the casual clicker where they are hosted.
I doubt if that £2.99 a year includes any webspace. For that, you'd be looking at more like £45 - 50 a year. I have a separate US hosting company for another purpose, and they charge me $45 a year.