Live House! is an anime only episode released in the 7th DVD/Blu-ray release of K-ON!. It is therefore considered as an original video animation (OVA).
The episode starts 10 days before New Year's Eve. Ritsu Tainaka got invited by her old friend Maki to perform in a live house alongside her band and asks the other members of the Light Music Club if they are also willing to perform there. Yui Hirasawa and Tsumugi Kotobuki are totally for it, but Mio Akiyama and Azusa Nakano struggle with the idea until Tsumugi manages to convince them.
After school, the pay the live house a visit and discuss with the manager Kawakami the conditions. After everything is discussed, they are shown around by her. At Yui's home, they inform Ui Hirasawa about the concert and invite her and her friend Jun Suzuki to it. The next day at school, they also invite Nodoka Manabe to come along.
The day of the concert finally arrives and the band meets at the live house. Going inside, they get awfully scared by the other present bands like Love Crysis, who appear to look hostile and scary. This holds not true however, as everybody greets them normally after all. Maki recognises Ritsu and introduces her bandmember Aya to them, who is a great fan of Mio and also praises Yui.
After the two go back to their bandmember Shiho, Yui is inspired by Love Crysis' CD to come up with an own band logo and invents the logo of a teacup, fitting to their name and guiding theme.
Shortly afterwards, the receive their backstage passes and start to fill their setting sheet. Clueless about how to fill it, Yui asks the other band for help. While everybody admired the professionalism of the other bands afterwards, Yui starts to be overpowered by almost everything she sees, so the others take her aside. Since she does not seem to calm down, Mugi suggest having tea. The other bands eventually join as well and Ho-Kago Tea Time learns more about them. They start to be too relaxed and forget to rehearse.
Having a chaotic start for the rehearsal, Yui forgets to sing and butts her nose at her micro out of shock. The bandmembers try to help her, but Mio and Mugi trip and fall down as well, so the rehearsal ends embarrassingly. Frozen in shame, the band does not know what to do, but the other bands encourage it to go on as such accident are normal for beginners. Countenanced, the band starts again with new confidence.
An hour before the concert starts, Yui meets with Ui, Jun and Nodoka who all came to visit. The advisor of the Light Music Club, Sawako Yamanaka, visits the live house as well and meets with her old friend Kawakami after a long time. Both watch Ho-Kago Tea Time perform "Fuwa Fuwa Time".
After the concert successfully ends, Ho-Kago Tea Time thanks Love Crysis for the support and goes to Yui's home to celebrate New Year's Eve with Sawako. Yui, Ui, Mugi, Azusa and Sawako fall asleep seconds before the new year starts, much to the anger of Ritsu.
A few hours later, Yui wakes up the rest and drags them to her "special place" to see the first sunrise of the year with them together.