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Surprising decision from Heart in a way. A good percentage of the free hosting was used to 301 redirect sites rather than host them live, no resources involved. May be part of the reason, perhaps they felt (quite rightly) those sites would never grow into paid accounts.
Trouble is, Heart don't offer a 301 redirect for parked domains, only a relatively useless 302. So now everyone is moving those domains to another registrar to set up a site wide 301, not as ideal as page by page but with most links likely to be to the root of the sites, not a terrible decision.
Just moved a few myself, we didn't want to get involved in reseller hosting but always asked our clients to use Heart, easier to have everything in one place, where you are used to the set up yourself. Two of those clients have already requested that all their sites be moved, 15 in all under various accounts, just didn't like the way this was done.
That's going to cost Heart about £800 a year, no big deal but plenty more will feel the same plus others will be tempted away by offers form their new registrars, most of whom of course offer hosting.
I was chatting to one of the Heart guys about this earlier today and this one silly decision is going to seriously dent them, possibly as far as out of the game, hosting is a competitive, marginal business. Of course they will see an increase in revenue from those who upgrade but sounds like the numbers are mainly in the other direction.
All they had to do was the same as others have done in the past, stop new entries to free hosting, leave well alone and offer 301 redirects. Problem solved and happy customers, instead of that they have the opposite and may continue to slide. We're certainly looking at all our options at present, which was the point of discussion with them, not impossible they will lose over a hundred domains from our clients and many others will do the same.
One things for sure, until I see whether they survive this won't be putting any new accounts or sites there, only means moving them otherwise. Also made us look not wonderful, we have gone out of our to recommend Heart and then they pull this.
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