Insufficient evidence exists to prosecute a suspect identified by detectives investigating the macabre murder of a homeless mother found in a seafront shelter, an inquest heard today.

Jennifer Kiely, 35, was repeatedly stabbed, burnt and probably sexually assaulted before her corpse was found in a thatched shelter by a cleaner in the Holywell area of Eastbourne, East Sussex.

A post-mortem examination found that former waitress Ms Kiely died mainly due to stab wounds inflicted on her chest before she was found at 5.15am on January 22 2005.

Detective Chief Inspector Graham Pratt, of Sussex Police, said 1,800 hours of CCTV footage was viewed by officers, an appeal made on the BBC's Crimewatch programme and members of the local homeless community were questioned.

But despite an extensive investigation led by the force's major crime branch, no-one has been charged with Ms Kiely's death and the case remains subject to review, he told an inquest in Eastbourne.

Mr Pratt told the inquest that their inquiries identified two main suspects. One of them remains a suspect but the Crown Prosecution Service (CPS) has said insufficient evidence currently means a successful prosecution is unlikely.

He said: "The investigation at the present time remains unresolved and will be subject to regular review."

Mr Pratt, who led the case, codenamed Operation Kittiwake, said that the motive for her killing has never been fully established.

The inquest heard that Ms Kiely became estranged from her family including her three children, who were aged 11, 12 and 15 at the time of her death.

Originally from south London, she lived in hostels and homeless shelters across the south of England from around 2000 and suffered from mental health problems triggered by the breakdown in her relationship with her partner.

East Sussex coroner Alan Craze recorded a verdict of unlawful killing.