Happy House

Happy House was released as a single on 7 March 1980 and later placed first on Kaleidoscope. It was the first record made with McGeoch, who was still a member of Magazine at the time, and with Budgie. It reached number 17 in the UK, the band's second top 20 hit. Budgie, who was interested in African polyrhythms, used a reggae feel, and McGeoch played both atmospheric and edgy guitar. Siouxsie called it Banshees phase two.

She described the song as sarcastic, comparing it to television and advertisements that project the perfect family, with everyone smiling and perfect. The video is set in a studio cartoon house made to look fun and happy, and McGeoch does not appear in it.

Johnny Marr of the Smiths said in a 2008 BBC Radio 2 interview that from a guitar-playing point of view the song was modern and without the creaky old rock and roll aspects. The Italian dance act Cappella used its riff on U Got 2 Know in 1993, and the Weeknd sampled it on House of Balloons in 2011.