Neighbour Frank Wilson, to whom Terry lent his lawn-mower, has moved and let the house to snooty Tarquin and Melinda Fry, who refuse to return the lawn-mower, claiming that it was on the inventory of the house's contents. Terry and Alan break into the Sprys' shed to reclaim the lawn-mower but accidentally let off some fireworks so that when the lawn-mower is ultimately returned it is too badly burned to be much use.
After visiting Malcolm in hospital the Medfords get roped in to helping him with a show on the hospital radio station. June is to give a live cookery demonstration and Terry to chair a discussion on hospital food, which ends up with the kitchen staff going on strike, and the whole show is a disaster as Terry and Malcolm lose their scripts.
Sir Dennis is hoping to open a new outlet of his fire extinguisher factory in Europe to combat Japanese dominance in the field so Terry is learning French. Then Alan arrives with a load of rabbit costumes from 'It's a Knockout' which he gets the Medfords to store for him. Unfortunately he later reappears with a group of Japanese businessmen to claim the costumes just as Sir Dennis has arrived for dinner with the Medfords.
June is not happy when Terry, who has refused to help in the garden, is only too keen to assist the attractive Cynthia to lay paving slabs and less happy to find them in an - accidental - compromising position. After Malcolm and Beattie have split up after one of their many rows, Malcolm asks Terry to put in a word with him for Cynthia, leading to another misunderstanding before Malcolm and Beattie reconcile and June realises that Terry has not been unfaithful with Cynthia.
Terry and June decide to have a pleasant weekend away from suburbia and go to stay at the pub run by Alan, who soon ropes them in to help as he is short-staffed. When the barmaid's moped breaks down on her way to work, Alan goes to collect her, leaving the Medfords to run the pub. The area managers arrive unexpectedly to check the place out and are so appalled by the incompetence of the new 'employees' that they make Alan give them the sack.
When Malcolm goes down with flu Sir Dennis asks Terry to take his place at a conference in Eastbourne, which Terry delightedly sees as a free holiday. However he also goes down with flu on the Friday before the week's conference and takes to his bed. Then June also gets the symptoms and, although Terry makes it to Eastbourne, he is in a wheelchair having broken his leg falling downstairs whilst ministering to June.
Christmas has come round again but the Medfords get the festive doldrums when it looks as if daughter Wendy will be unable to visit. There is much eating, drinking and merry-making around the Christmas dinner table, though the fact that philandering Malcolm has received a card from a mystery woman annoys Beattie. Come New Year's Eve, however, Wendy and her husband turn up for the party and Beattie turns the tables on Malcolm, making him violently jealous.