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/Peo, FreeWebSpace.net
Most hosts seem to accept yearly payment, but most customers tend to shy away from it. It's understandable, that is why hosts offer discounts if you pay yearly.
I think it's better for hosts if they charge annunaly. It's not only cheaper, but they can offer prices cheaper because the credit card processing fees arent as high if payed yearly.
I have some accounts that are paid yearly. There are real bargains to be found. The key is to find one that is reliable. There are many that look great but the service is weak (I've tried my share).
Here is my "current" favorite list of yearly paid hosts....