are sold the house by real estate agent A.J. Powers (Milton Johns), but the house was the site of a gruesome murder when an elderly man poisoned and hacked his wife to death. Soon, strange happenings begin, with creepy noises, doors that shut and do not open, leaking gas pipes, the appearance of bloodstains on walls, and even the slaughter of Sophia's pet cat by an unknown force. Their neighbours, George and Joan Evans, do their best to help the family, even sheltering them in their house. The Peters learn about the murder case, and request the Evans not to tell anyone about the recent happenings. Thereafter the paranormal events cease. Months later, Joan visits the family and the ghostly activities restart, forcing William to blame Joan's 'presence in the house' for it and send her away. During a children's party for Sophia's birthday, an overhead pipe breaks and blood sprays over all of the guests, triggering further panic. Emma is hospitalised with shock. William meets with Powers, who devises a plan to send the family away to 'safety'. The news reaches the media and soon the house is known as The house that bled to death, owing to its history and the recent events with the Peters. Powers uses this opportunity to write a book based on these events, which becomes a bestseller. The Evans learn that the Peters have abruptly left England, and that William and Emma were never married. Three years later in California, William and Emma (who is revealed to actually be a single parent) are rich and living together, with Sophia who is now older. It is revealed that everything was a ploy, and the entire sequence of events were staged to deceive everyone into believing the house was haunted and they were forced to flee. Powers sells the film rights to his bestselling book, based on these 'paranormal' experiences, making himself, William and Emma even richer. However, Sophia (who was never told of the scam) has become quiet and detached and Emma worries she may have been affected by the traumatic events in the house. When Sophia reads Powers' book and then discovers the belongings of the old couple who lived in the house before them, she seemingly becomes possessed. Picking up the kukri, the murder weapon from the old house, she walks into her mother's bedroom and kills William as Emma screams in