Anna and Miles have doubts about each other after finally getting together at a party. Egg says goodbye to both his father and his writing career. Milly is taken aback by the arrival of an attractive new trainee at the firm.
Anna is up against Miles in a court case. Anna changes her plea without telling Miles and wins the case, much to his annoyance. Kira is angry that Kelly has returned to work and taken her job back as receptionist. Warren is surprised when Ferdy calls to the house. He tells him that the wedding never took place due to his fiancée finding out that he was bisexual. Warren allows him to stay at the house for a while.
The housemates come to an agreement that Egg can cook for them by paying him for groceries each week. Egg loses the money at the bookmakers and claims that he was mugged. Ferdy is still upset at having split from his fiancée, although Warren is adamant that he is gay. Anna, now up for tenancy at her law firm, has not impressed the other barristers with her underhand tactics against Miles. Egg applies for a job as a chef.
Miles has placed a lonely hearts advert in a magazine and sets himself up on some dates - with limited success. Egg is enjoying his new job at the café working with a girl called Nicki. Warren is frustrated with Ferdy staying at the house as Ferdy is showing no interest in him. To relieve his anguish he goes to the local park to pick up a man, but is arrested by the police.
Warren tells O'Donnell what has happened, but as a reporter shows up at the office, O'Donnell becomes uneasy about the bad publicity. Anna assists Miles on a case and helps him to win. With Warren's story in the newspaper, O'Donnell asks him to consider handing in his resignation. When Warren refuses, O'Donnell is forced to sack him.
Warren attends a line-up and is being defended by Milly. Kira has asked Jo out, but she has a plan to play hard to get. Egg is paranoid that Nicki fancies him and feels awkward when they go out for a drink together until she tells him that he's not her type. O'Donnell tells Milly that she must drop Warren's case. Milly passes it onto Anna, who gets him off with a small fine.
Warren has decided to leave and travel the world - beginning with Australia. Egg discovers that Nicki has a five-year-old son. The others begin to discuss who to rent Warren's room out to. Milly is angered when Rachel is suggested, due to her increasing dislike of her co-worker. Dale calls to see Warren but they are unable to reconcile their differences. Later, a farewell party is thrown for Warren before he sets off on his travels the following morning.
An advert is placed in the local newspaper for a new housemate. A number of people are interviewed but none of them are deemed suitable. Miles calls Rachel to tell her to move in, but when Milly finds out she is annoyed and tells Ferdy that he can have the room. Kira and Jo go out on a date, and Kira's hard to get act is making Jo eager for more.
O'Donnell asks Milly to go to Paris with him on a conference. Milly agonises over her decision, but ultimately declines. Ferdy gets some hashish and while he's out of the house, the Police call to question him about the smashing-up of the car. Miles and Egg, who is stoned, are left to deal with them. On returning, Ferdy lies and gives Miles and Egg as alibis, much to Miles' fury.
Miles is suspicious about lesbian solicitor Sarah Newley who is sending a lot of work Anna's way. Jo and Kira finally cement their relationship by having sex. Ferdy goes out clubbing with the effeminate Paul, but decides it is not his scene. Egg meets up with his father, who tells him that he's getting back with his mother. The vote for Anna's tenancy takes place and, after an anguished wait, she's told that she has it. The housemates celebrate, unaware that Miles voted against her.
With O'Donnell and Rachel back from Paris, Milly is finding herself jealous. A handyman, Lenny calls round to fix the broken boiler in the house. Ferdy falls for him and they end up in bed together. Miles' father calls round regarding his impending wedding but Miles refuses to go until Anna talks him round.
Miles has met a woman and embarked on a relationship. Anna discovers that Miles voted against her in the tenancy and is angry with him. Sarah Newley congratulates Anna on her tenancy and admits she has fallen in love with her. Anna kisses her, but can't bring herself to go any further. Egg throws a themed Mexican night in the café.
Jo continues to fret that Kira may be pregnant. Anna is given an important case, working alongside an experienced colleague. The owner of the café tells Egg and Nicki that she's putting it up for sale. Egg looks into buying the lease and persuades Miles' father to be his guarantor. Milly finally gives into her feelings and sleeps with O'Donnell. Anna receives news that her mother has died but she shows little grief.
After a drunken night, Anna wakes up late for work and an important meeting with Graham. She attempts to get herself together by taking cocaine, but is later found out by Graham. With her career in jeapordy she is taken off the case. She later confides in Miles and admits she misses her mother. They end up sleeping together, despite Francesca being in Miles' bed upstairs. Miles goes in to Chambers and makes a plea for Anna's behaviour saying that she is still grieving. Egg is excited about the opening of the café, while Milly obsesses about her relationship with ...
The café opens to little success, leaving Egg deflated. Milly starts to see a counsellor about her troubles. As a condition to keeping her job, Anna is instructed to attend Alcoholics Anonymous but she finds it of little help. Ferdy is unsettled by Lenny's plan of introducing him to his family and ends up sleeping with a woman. The next morning Miles informs her of his sexual orientation and Ferdy thumps him.
Milly is surprised when O'Donnell's wife shows up at the office, but O'Donnell reassures her that they have separated. Anna continues to give Milly the cold shoulder. Miles' stag party comes around and he celebrates with the housemates, including Anna. Later, he tells Anna that he loves her and is willing to call off the wedding if she wants. Spying on O'Donnell, Milly sees that his marital relationship is far from over.
Milly is furious that O'Donnell has lied to her and ends their relationship. She makes up with Anna, who confides in her about Miles. Jo invites Kira to the wedding and she accepts. The wedding day arrives and as Anna refuses to reveal to Miles that she does indeed love him, it goes ahead. Egg asks Milly to marry him and she happily accepts. At the reception Rachel enquires to Milly about the now-spare room. Milly tells her that she has never liked her and that she will not be moving in. Rachel subsequently tells Egg about Milly and O'Donnell's affair. Egg is ...