[2][3] With the help of their friend Spiller, the Clock family have relocated to the miniature village of Little Fordham, where everything is perfectly scaled to Borrower size.

However, they are soon discovered by Miss Menzies, a kind but eccentric human woman, who reveals their existence to the village's creator, Mr Pott.

Miss Menzies and Mr Pott agree between themselves to keep the Borrowers a secret, while they also prepare a special, functioning miniature cottage for them.

Fearing their own model village will be ruined, as they cannot compete with a model village with live occupants, the Platters kidnap the Clock family and keep them in an attic, planning to show them after building a see-through, escape-proof miniature house in which to display the tiny family.

With their balloon, the family escapes the attic, but, realizing they cannot return to Little Fordham, they again strike out in search of a new, safe home.