Hero's house is not left of the prison - it's more east.
Haggle => He must have given you the key, it was a "reward" from the "Ball in well" quest, the little boy gave you this clue about the merchant taking bribes.

House left of prison can't be opened. the merchant has this key, but as keys can't be pickpocketed anymore, I have no clue how to get it and enter. Not detected attack option in his case. Wait... never tried this myself => but there is a letter from Ronnykins to his Mum. Have you taken that into your inventory and spoken to him? Maybe this triggers him giving you the 2nd key?

Last edited by kiya; 19/05/04 06:22 AM.