Matt and Lee become friends and he offers for her to stay with him, Hilary and Sharon at Number 30 and Hilary's neighbour, Kerry Bishop (Linda Hartley) lends Lee some spare clothes. When Hilary returns home to discover Lee in a towel and jumps to conclusions about Lee and Matt. Matt quickly invents a story that Lee is an old friend from Adelaide whose belongings were lost on the bus. Once the truth emerges about the lie, Hilary is quick to throw Lee out but grudgingly relents when Matt asks her to let Lee stay. After an argument, Matt kisses Lee and they begin dating. Over Christmas 1989, Matt goes home to spend Christmas with his adoptive parents. On his return, he is suspicious of Nick and Lee spending so much time together. Nick assures him they're just friends and they spent a lot of time together while Matt and most of their friends were away.