Spot good story involving people in a house (7)
I believe the answer is:
glimpse
'spot' is the definition.
(I've seen this before)
'good story involving people in a house' is the wordplay.
'good' becomes 'g' (abbreviation).
'story' becomes 'lie' (I've seen this before).
'involving' means one lot of letters goes inside another.
'people in a house' becomes 'mps' (MPs sit in the House of Commons).
'lie' enclosing 'mps' is 'limpse'.
'g'+'limpse'='GLIMPSE'
(Other definitions for glimpse that I've seen before include "Gander" , "Briefly catch sight of" , "spot" , "Notice" , "Fleeting vision" .)