I would remove the entire wall between kitchen and dining room only. I think if you remove the rumpus room wall, you are going to end up with a really long narrow space, which will be difficult to use. do you want a "separate room" (what about in the future-kids? play room,office, formal dining , etc? An alternative to completely opening up the rumpus room to the kitchen, would be to create openings on either side, and leave the wall in the middle section. 2 advantages-a solid space to place a piece of furniture, and create a zone, whilst still opening it up quite a bit. depending on what you intend to use the rumpus room area for- you might even consider moving that wall across, so it is centered between the windows-a bit more space on the kitchen side, and a cozy space on the rumpus room side - if its going to be a play room/office/small sitting area, it would end up being about 3.7*3.4, which is still a good size (just not enough for a dining room or pool table) And then completely remove the wall section that is between the living room and dining room Depending on whether you think heating/noise etc is a problem with it so open, you could add either a barn door, or double glass doors to the opening. DEFINITELY remove the arches- i would just square them straight of to the ceiling. and leave the openings..or add a barn door Paint all that brick white-you will be amazed how much lighter the house will be. consider a doorway from the garage into the kitchen-it must be a pain carting the shopping through the house. Also, your windows need some timber architraves on the inside. Have fun - its always so exciting starting a new reno (for me-into my tenth year on the one house-not so much anymore :/ )

I mentioned earlier to think about dropping the wall next to the stairs to hip or slightly higher height to allow for the TV, as this would further open up the top floor and perhaps show the street art, ie the framed print. I know that you don't want anything else hanging from the ceiling but because of the ceiling height you will need a reverse hanging fan to bring all the warm air down into the room that will sit up there if you don't. The heater is because you had one shown in your posted floor plan, this is one of the fires available on my 1997 CAD program, that's the colour it comes in but can be changed within the program cheers

Kate - Whilst I appreciate moving the door would be a great idea, it joins up to our laundry and the door is directly across from the laundry external door that leads to the side garden. I will take photos to show what I mean. Juliahocking - thank you for your suggestions. I am inspired by adding in cupboards/pantry on the opposite wall. Regarding flipping the kitchen 45 degrees, I have added measurements to clarify the space, and if I understand you correctly, there isn't enough room to flip the u-shape (although it is a great idea). I have added another (old) picture that shows the entry door, and next to the entry door is a sideboard/side shelf - this is where our butchers block/island is situated - so gives you an idea of the limited space. Old photo: Entrance door on the left. Next to the door is where the butchers block sits, underneath that painting.

Open up the cupboards and see what condition the carcass of the kitchen is. You might be able to keep the framing and add a new top and front doors to update it. Keep the layout the same and get invest most of your budget in the new stove. That wood panelling stuff may be tricky to paint so test a patch. the prepping and the right type of paint will be important. Another option (depending on budget) would be to put new panelling over the old, or even wallpaper over it, but you've need something to fill the grooves and smooth the finish. Those peel and stick wallpapers would probably stick to the smooth surface ok, but its not something I've done before.