Did I do the right thing?

So we were friends for years, made out one drunken night and realised something was there and started seeing each other now he lives in Manchester and I live in Bath. We talk everyday and Skype and phone calls and although we both admit it's not as ideal as being near each other but it was enough for us to agree to not see other people. But then he messages me tonight saying he likes someone else and he thinks they like him but he doesn't us to be over or to lose me. I was upset and panicked and said "go for it!! She lives close to you so it'd be better than anything we would have go for it we can be friends it's cool". Not going to lie I'm a bit heart broken But I think he is better off without me, I was just holding him back x