A man was arrested on Tuesday morning at a house in North Shields, Tyneside, on suspicion of murdering Miss Lawrence, who went missing in York in March 2009.
Today dogs from the North Yorkshire Police dog section were brought to the house and searched the back garden.
A neighbour told the Chronicle he was stunned when he discovered his neighbour was being arrested over Claudia's death.
The neighbour said: "I still can't believe he's been arrested. I think they will be letting him go."
"He never married," said the neighbour. "He didn't seem to bother with women. He was just devoted to his mother. He kept her in her own home as long as he could. He was just that kind of lad. Whenever he saw me getting a taxi he said I should have just asked him for a lift. His mam thought the world of him."
