The Grants invite all their neighbours to their New Year's Eve party. Roger and Heather return home, and discover that their alarm has been tampered with, and Gavin has erected a multicoloured shed to house his cookers.
The whole close is burgled. Despite Petra working for an insurance company, her house contents are not covered. Lucy exacts retribution upon her tormentor at school.
Barry makes Duane understand that boasting about his "conquest" of Karen was really not a very good idea. Meanwhile, Lucy is being physically intimidated at school.
It is an upsetting Christmas for the Collins family, while Karen has a hangover, Bobby has an emergency meeting, Roger's burglar alarm goes off again, and Damon has no presents.
Heather wonders why Paul is always at home, Roger is becoming agitated about the cookers in the next garden, Karen's period starts, and a strike looks imminent.
New neighbours arrive in a large frozen meat truck. Karen wants to persuade Bobby and Sheila to allow her to go on holiday, and Heather gets her revenge on Roger.