I agree with the other comments. Both rugs are too small, especially the dining room rug and you could use one or both rugs to introduce some colour into the area. I would consider one patterned rug for the dining area and a plain rug in one of the colours from the patterned rug in the living area. The dining area rug should be big enough that when you pull out the chairs to sit down, they're still entirely on the rug. The living area rug doesn't need to be too much bigger. Rugs which look soft and plush may help to soften the tiles and look inviting to guests, but they could be difficult to keep clean with two pets. I would definitely try to find some art for the walls. There are a range of somewhat affordable options from online sources like Urban Road. Just choose an accent colour or two and find some art which will help to introduce that colour. The sofa, especially with the ottoman, does seem to be too large for the space. I would consider storing the ottoman elsewhere and trying to pull the sofa away from the back wall if at all possible so that it doesn't look squeezed into the space. The TV cabinet and dining table are very different styles. As the dining table looks newer, I would try to find a TV cabinet which compliments the dining table. I would look for something as low, narrow and unobtrusive as reasonably possible given the confines of the space. I wouldn't worry about a coffee table due to the small space. Once you have your accent colour, a vase or maybe a small, regularly used appliance like a toaster, in that colour on the kitchen bench would help to tie it all together. You have a neutral base, so I think you can choose any colour. Good luck!

I had a 2nd hand lovely resort style lounge (cane with fabric) which quickly became pulled and tatty after my 2 small dogs had been using it. The leather lounge & two large leather recliners I have show no damage (regardless of long or clipped nails) and both pets love these. Having a blanket the dogs know is theirs is a great idea especially with leather, as the initial cold feeling of leather means both dogs only want to be on the blanket.

The covering of the sofa is less important than the style - go for one that is long enough to lie down on, not too puffy and not a corner suite. The key thing with your dining furniture is to have the same colour legs on your sofa - there is often choice of stain or most places can arrange this for you sometimes oiling it yourself is an option. I have found sourcing nice dining furniture can be more challenging than couches so I would do that first- remember you don't have to match the table with chairs you can mix and match which is usually more interesting. A relatively neutral couch is a good idea but think about durability - personally i am not a fan of black couches unless they are light in frame- they can really dominate your room. If you want lighter style of furniture try places that do retro - mid century as they seem to be smaller and lighter in appearance. Bring in some texture and colour with cushions a clock, a throw rug and art work - but don't rush - take your time finding the right thing. all the best

Do you have a picture of the room? If you get a tan leather to go back with the grey, I would want to see cushions, throws, a rug and artwork that have lots of grey and tan to link the colour palette together. If you go for fabric, then your choices for decorating the space can potentially be broadened to your imagination... depending on what else is already in the space (that's why a photo will help).