Deirdre is thrilled when Blanche and Tracy arrive for her engagement party. Blanche is amazed by the luxury house. Alec discovers that Jack posed as Ken to meet Renee Turnbull and is furious. Jack maintains he did Ken a favour as Renee would have eaten him alive. Steve clears all his things out of No.11 and accuses Jim of smashing their whole family apart. He then moves into his new flat. Ken refuses to attend Deirdre and Jon's engagement party but changes his mind for Tracy's sake. Deirdre has all her friends round to the new house for a housewarming and engagement party and loves showing off her new home. She is glad when Blanche and Tracy approve of Jon. Liz is jealous of everything Deirdre has whilst she has nothing. Deirdre is stunned when Jon announces to everyone that they're marryi