Moonfruit describes itself as the no. 1 hosted site builder in the UK and has well over 5 million sites hosted on their system. It regularly receive multipe 'stars' from the leading computer magazines.
In 2012 the company was acquired by hub (used to be Yell) and now has operations in the UK, USA, Spain and latin America
They offer online editing with drag and drop design and layout. The free version gives you 20MB of storage, ability to make one site, (including a simple shop) and lets you make up to 15 pages. Unsurprisingly it has the Moonfruit name on the site as well. if you want to remove that and use more facilities they have a number of pain packages ranging from £4.00 - £25.00 per month.
They have a huge number of template combinations, a nifty membership tool to only allow members into selected pages, video players, picture galleries, MP3 jukeboxes and a App library of useful things you may want to add to your pages.