Hilda spreads the news that people have moved into No.12. Ena realises they are squatters from the state of their furniture. Len argues with Dave for moving them in, as does Val. She warns Ken not to be led on by Dave but he insists he does things because of his own beliefs. Stan reads a book on better communication. Audrey shops for the squatters, further annoying Val. Dickie tells his wife she’s encouraging people not to work for their living. Dave tries to convince Ena of his socialist beliefs, saying people should just learn to live together and not just protect what's theirs. Annie gets a letter and acts coy over its contents.