[3] As a yearling, On The House was sent to the Houghton sales at Newmarket, but failed to reach her reserve price and therefore raced in the Oppenheimer colours of black, white and red.
A month later she was brought back in distance for the St Hugh's Stakes at Newbury Racecourse and recorded her first success as she won by one and a half lengths from Lavender Dance.
On The House and Woodstream went to the front approaching the final furlong and raced alongside each other for a few strides, but the Irish filly pulled ahead in the closing stages and won by one and a half lengths.
On The House went into the winter break as third favourite (behind Woodstream and Circus Ring) for the following year's 1000 Guineas, although the independent Timeform organisation expressed doubts about her ability to stay the one mile distance.
The race appeared to confirm the suspicion that on the House lacked stamina, and Eddery opted to ride Merlin's Charm in the 1000 Guineas over Newmarket's Rowley Mile course on 29 April.
On The House was ridden for the first time by John Reid and started a 33/1[5] outsider in a field of fifteen fillies, with the French-trained Play It Safe, the winner of the Prix Marcel Boussac, being made the 5/2 favourite.
She started 3/1 favourite in a field of twenty-four, but after briefly taking the lead in the straight she finished third, beaten a length and a short head by Prince's Polly and Woodstream.
As a Group One winner, On The House carried a seven-pound weight penalty when she reappeared in the Waterford Crystal Mile (run over the same course and distance as the Susesx Stakes) on 28 August.