Joanna Yeates's landlord has been released without charge and is no longer a suspect in her murder, police confirmed yesterday.
Christopher Jefferies, 66, had his bail cancelled on Friday and is no longer a suspect, Avon and Somerset police said.
The former English teacher at Clifton College was arrested after 25-year-old Miss Yeates's strangled body was found on Longwood Lane, Failand, on Christmas morning.
He was questioned for two days before being bailed to a date this month, pending further enquiries.
Mr Jefferies owns the ground-floor flat at 44 Canynge Road, Clifton, which landscape architect Miss Yeates shared with her boyfriend Greg Reardon.
He lived on the floor above the couple, but has now put that flat up for sale as he tries to put the negative coverage of the case behind him.
A close friend said Mr Jefferies was "immensely relieved" after the nine-week ordeal of being associated with the crime.
Brian Worthington, 71, who has known Mr Jefferies since 1970 when they were colleagues, said: "I was told by him that he had been released and he was immensely relieved and really pleased. Maybe now he can get on with his life.
"He has a lot of very good friends that have given him tremendous support and believed immediately in his innocence since he was arrested. Everybody has been puzzled as to why it hasn't happened sooner. Everybody around him expected his bail to be lifted.
"I don't know if he is angry at the police – he is being advised by his solicitors on what to do and say next. He's just immensely pleased – and what else do you expect him to be?"
Douglas Henderson, also 66, who has known Mr Jefferies for 42 years since they taught English together at the exclusive Clifton College, was one of those who spoke to him.
He said yesterday: ''He phoned me on Friday and the phrase he used was that he had been 'eliminated' from the police inquiry.
''He's not an emotional person but he sounded very relieved.
''I understand he is moving too, which is a pity – it's like he has been hounded out of his own flat.
''He did say the police had treated him well and were courteous to him. He said he didn't think police would make an announcement because they wouldn't want to admit they had made a ghastly mistake.
''Everyone who knows Christopher believed he was innocent. He is such a well-thought of man by colleagues and former pupils.
''It was totally improbable that he could have done this. I've never even seen him break into a trot so I don't know how they thought he could strangle someone."
The police are refusing to say why Mr Jefferies remained a suspect for so long, despite arresting and charging Miss Yeates's next-door neighbour, 32-year-old Vincent Tabak, with her murder.
Spokesman Wayne Baker said: "We can confirm that a 66-year-old man, arrested on suspicion of the murder of Joanna Yeates, was released without charge on Friday, March 4."
Yesterday, neighbours of Mr Jefferies said they never doubted his innocence.
One resident and friend, who lives close to 44 Canynge Road, said he had been back to his apartment since his arrest.
He said: "We always knew he was innocent. He has been back to the flat a few times but I don't think he has taken up residence again."
The neighbour said Mr Jefferies was considering suing the police for wrongful arrest after his "traumatic" ordeal.
Mr Jefferies is understood to be staying with friends.
His one-bedroom flat is on the market with Hydes Estate Agents for �245,000.
The estate agent's photographs show the furnished property, where Mr Jefferies has lived for ten years, looking spacious and polished, with no hint of the extensive forensic examination police carried out.
The snow-covered body of Miss Yeates was found eight days after she was last seen alive by friends. Mr Tabak, an engineer for Buro Happold in Bath, has not yet entered a plea to the charge against him.
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