A garland made from coloured paper carefully draped over the front-door window was the only clue that an arrival had been welcomed at the large family home.

The wife and children of Abu Qatada, the fanatical preacher, greeted him with open arms after his release from prison, although the welcome from neighbours in suburban West London was far less warm.

Abu Qatada enjoyed his first day of freedom yesterday as he adjusted to life under virtual house arrest. The radical cleric, who is considered to be one of the world’s most dangerous terror suspects, appeared briefly at a window at his semi-detached Victorian home using a telephone. He could be seen laughing as he joked with wellwishers after his release from Long Lartin prison in Worcestershire on Tuesday evening.

It remained unclear last night whether he was in breach of bail conditions imposed by the Special Immigration Appeals Commission that ban him from using a mobile telephone. It was not possible to tell whether Abu Qatada, who was once described by a Spanish judge as Osama bin Laden’s right-hand man in Europe, was using a handset linked to his landline – which is allowed under his bail conditions – or a mobile phone.

About a month ago the Jordanian’s family moved into the four-bedroom house, worth £800,000, in Acton. Residents on the tree-lined street thought little of the arrival of the Muslim family in an area that celebrates its ethnic diversity. But yesterday the gossip over privet hedges was that the 47-year-old preacher had moved into their community.

“The fact that he is in my country, let alone around my neighbourhood makes me mad,” said Michael Lamb, 34, who lives nearby. Mr Lamb served in the Royal Navy in the Gulf War and works in public relations. “The timing is incredibly bad. We are losing men in Afghanistan and now this man is allowed to live here,” he said.

One neighbour, who did not want to be named, said: “I heard it was the Islamic extremist earlier on today. That does worry me. I remember the family moving in and the woman was dressed in traditional Muslim dress. There was a flurry of activity there last night, I guess it was when he returned.”

The net curtains remained closed at the home yesterday. As part of the strict bail conditions, Abu Qatada will be required to stay at the two-storey rented house for 22 hours a day. The terror suspect, wanted in Jordan on charges connected with al-Qaeda, will also be required to wear an electronic tag. He is allowed to leave the property for an hour from 10am and another hour from 2pm.

A friend of Abu Qatada told The Times: “No matter how strict the conditions it is better for him than being in prison. Having to stay indoors will not be too much of a hardship. In the past he used to stay inside all the time, sitting in his study reading books. He got quite obese at one stage but in prison he has lost weight and got fit and is in much better shape.

“The worst thing for him is that he is not allowed to attend the mosque. That seems very unfair and I imagine that he will seek to challenge that later as a restriction on his religious freedom.”

Jacqui Smith, the Home Secretary, yesterday pledged to appeal against a court ruling preventing his deportation to Jordan.

Abu Qatada was released after he won his fight against deportation. He has been convicted in the Middle East in his absence of involvement with terror attacks in 1998. Abu Qatada came to Britain as an asylum-seeker in September 1993 on a forged United Arab Emirates passport.

Ms Smith said: “I am extremely disappointed that the courts have granted Abu Qatada bail, albeit with very strict conditions. I am appealing to the House of Lords to reverse the decision that it is not safe to deport Qatada and the other Jordanian cases. The Government’s priority is to protect public safety and national security and we will take all steps necessary to do so.”

Dominic Grieve, the Shadow Home Secretary, said: “This man should be deported if possible. His presence is offensive. Failing deportation, he should be prosecuted.

“This is why, for example, we have called on the Government to allow the use of intercept evidence, so they have every weapon possible to prosecute these individuals.”

The cleric’s bail conditions include a ban on attending “any mosque” or leading prayers, giving lectures or providing religious instruction to anyone except his wife and children.

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