It was built outside of the video so Stampy and his helpers in the episode can sleep there without going back to Stampy's House because the Funland is on a great distance from his house. He uses in his earlier videos but as the Funland grew, there was less purpose to this home.
The house is divided into two floors. The first floor contains the storage room. There are features on this floor, such as the Mario theme music played using note blocks (which is activated by a button) and a water tubeway that is similar to the one on Stampy's House. The second floor contains the bedroom where Stampy and his Minecraft helpers can sleep.