The landlord being held on suspicion of the murder of Clifton woman Joanna Yeates is facing a second day of police interrogation.

Retired public school teacher Chris Jefferies, 65, was arrested yesterday at his flat directly above the basement property he rented to the 25-year-old landscape architect and her boyfriend Greg Reardon, 27.

The bachelor’s arrest came just 24 hours after he claimed he had watched as three people left Miss Yeates’ flat in Canynge Road, in the upmarket area of Clifton, on the night she vanished.

Mt Jefferies taught English at Clifton College, just yards from his flat, from the early 1970s before taking early retirement in 2001.

He is an enthusiastic activist for the local Lib Dems, and is also a member of the Clifton and Hotwells Improvement Society.

Councillor Trevor Blythe, who represents Clifton Ward for the Lib Dems on Bristol City Council, said: “We were absolutely flabbergasted when we heard he’d been arrested, I didn’t know him particularly well, but it was very surprising.

“It’s a terrible tragedy what’s happened, and I’m just flabbergasted that Mr Jefferies has been arrested and we await any developments.”

Ray Lowman, who lives in a flat opposite the mansion where Mr Jefferies and Miss Yeates lived, said: “I’m amazed by it really but also find it quite disconcerting. He is basically a pillar of society. One of the well-known familiar locals.”

Clifton College head Mark Moore said Mr Jefferies had at one time been the school’s head of English.

Yesterday, police took away on low loaders two cars – a silver Chrysler Neon parked on the street and a grey Volvo S40 that was on Jefferies’ drive – for examination.

Forensic officers spent the day in both Miss Yeates’ flat and Mr Jefferies’ property – taking away large brown evidence bags from both.

Miss Yeates was last seen on December 17 and her snow-covered body was found on Christmas morning by a couple walking their dogs in Longwood Lane in Failand, North Somerset. She had been strangled.

Her parents, David, 63, and Theresa, 58, said they were pleased an arrest had been made.

A £10,000 reward has been offered to help police catch her killer and fresh CCTV was released of Miss Yeates buying cider in a branch of Bargain Booze on the night she vanished.

Anyone with information is asked to contact the Operation Braid incident room on 0845 456 7000 or Crimestoppers on 0800 555 111.