Jane wants to become a nun so Baines sacks her and brings in stern German matron Greta Mueller, who is a tyrant and tells Sarah where Diana hid the Porsche.

Tom cons Baines into making him the head of the Residents' Association and gets up a petition, which Baines thinks is to get rid of Diana, so he signs it. Actually it's to get rid of Greta, so he is forced to fire her and reinstate Jane.

Following the death,alone, of a resident, Tom puts himself forward as a counsellor to aid and comfort the terminally ill.

A new female resident arrives and has afternoon delight with old Basil. Some time later Basil seems to be dying and Tom rushers to counsel him but he is merely suffering from exertion after sex with the lady. However, the lady dies and Tom organizes a splendid send-off for her.

Tom is depressed because he is missing his late wife but Marion and Geoffrey are not keen to have him home on respite. He turns his attentions to Diana and suggests that they shack up together, a proposition that offends her so much that she has a partition built between their two rooms. Her mood is not helped by the arrival of new resident Daisy, who has a strong personality like herself and with whom she soon clashes, though Tom gets on well with her.

In order to cut costs Baines decides to employ illegal immigrant workers at Bayview.

To Diana one incompetent foreigner, the gardener, is enough and, after the residents have staged a protest, order is restored.

Tom has been overdoing physical exercise in his efforts to get as fit as Linford Christie and his collapse leads Diana to persuade him to slow down.

After she has been accused of selfishness, Diana goes to work as a volunteer at a charity for elderly people and takes up the cause of an old lady about to be evicted by unscrupulous estate agent Janet Follett.

Diana learns that Ms. Follett is Baines' new girl-friend and she has plans for Bayview which will not go down well with the residents. With a little help from Tom and her media background Diana sets out to expose Ms. Follett.

Diana decides that she would like to enter politics and stands as an independent candidate for the Residents' Party. Baines has been asked to stand for the Tories so Tom decides he will have some fun and join in the race too.

Diana is forced to stand down when Baines threatens to sack care worker Jenny but Diana makes sure that this is used against him too and his political career is a non-starter.

The residents are getting wet waiting for a bus but when it arrives the driver claims that they cannot get on for free for another four minutes as they are too early, so Diana hauls him off the bus and Tom hi-jacks it on behalf of the residents.

Later this will come in handy when a very pregnant Sarah arrives, seeking Diana's reluctant help to deliver her baby. Ultimately a girl arrives, unsurprisingly, Sarah calls her Diana.

Diana is horrified to find that she is unaccountably in the red and goes up to London to cause a fuss, only to discover that all her investments have gone into receivership.

Back in Bayview, Tom's room is suffering from severe rising damp so Tom comes up with a solution that will sort things out for them both. They will live together in one large room. Diana accepts this but draws the line at being carried over the threshold.

To Jane's disapproval, Diana and Tom are now living in sin, or rather together, but already they start arguing, since they can't decide whose furniture they should be using.

A new resident, Mrs. Kent from Gwent, arrives. She is withdrawn and nervous so Tom and Diana put on an act of being very happy together in order to bring her out of her shell. As it happens they do get a result - but only when she sees what they are really like.

Living together is not the bed of roses that Tom and Diana were expecting. He criticizes her sloppiness and her funny little ways, such as feeding acorns to squirrels with a sling-shot. She decides to move out and goes to stay with Sarah to be a nanny to baby Diana but this is not her forte.

Tom misses her, especially when Geoffrey decides to move in with him again.

Whilst Mr. Kwok demonstrates karate to the Bayview males, who vie with each other to impress Jane, Tom is introduced to Jane's psychic, Marjorie Evans, and asks to be put in touch with his dead wife.

A seance is duly organized, but Marion has bribed the medium to give a fake message, saying that Tom's wife disapproves of his relationship with Diana. Diana,however, exposes the plot.

A promotional video is being made to extol the virtues of Bayview and several residents are to have speaking parts, including Basil, who sees himself as the new James Bond, Tom and Jenny.

The excitement is such that few will heed Diana's view that it is just another money-making scam by the idiot Baines - except Tom, who joins her in sabotaging the project by substituting footage of Marion and Geoffrey giving a rather more realistic look at life.

A strange reversal of fortune overtakes Bayview with the hospitalised Baines seen as the victim and Diana his tormentor. She is sent to Coventry and there are threats of staff strikes unless she goes.

Help comes from a most unexpected source - Marion, whose pharmaceutical knowledge leads her to see that Baines is faking his condition. Diana is vindicated though Tom has made her apologize to Baines in order for her to be allowed to stay. He knew Baines was faking it but thought the humility would do her good.

There is to be a conference on the needs of the elderly held, and Diana is asked to be the local representative. At the same time Tom is waiting on tests to see if he has prostrate cancer, and so Diana researches the subject for the conference.

Although the results of the test are as yet undisclosed, Tom declares his love for Diana.

Whilst planning his pre-nuptial agreement with an eager Jane, Baines is told that he is not a proper priest and that any attempts he makes to get money from his ordination will lead to fraud charges. Diana is of course delighted but she has more pressing matters - Tom's threatened bungee jump. She agrees to marry him if only to stop the jump from going ahead but insists on her own pre-nuptial conditions.