Hi Zoe, Congratulations to you both on your 1st home purchase. Small designer furniture is what comes to mind. 2 seater sofa, lamp table, floor rug, small coffee table and a TV entertainment unit that fits the common wall at the kitchen end. Light coloured furniture & decor and the clever use of wall lighting will help make the room seem larger. The good thing is you can spend up big on the small amount of things you need to buy. Below are some images that I've found online that could be of interest to you. Links as follows: http://ynnu.net/tips-in-decorating-small-living-room-design-with-modern-furniture/elegant-grey-sofa-furniture-and-indoor-flowers-plant-in-small-living-room-decorating-design-ideas-2012 http://www.besthomedesigns.org/start-small-living-room-decorating-ideas/small-living-room-ideas/ http://abanthome.com/living-rooms-ideas-for-small-space/ http://www.a-v-designs.com/wp-content/uploads/2013/05/Very-Small-Living-Room-Ideas-66.jpg

Check out some of the plastic type outdoor ones. Nothing like the old days. These are modern and colourful and a little bit spongy underfoot which is really comfortable.

Lovely kitchen you have, and a butlers pantry is heaven. I think the shelves next to the fridge make the kitchen come undone. Why not extend the shelves along the wall. You can add books, style the shelves and have practical and design options in the space. Once you put a rug, I would do a round one like armadillo and co make the floor feature with a small round table sitting on the rug. Just search small round table and everyone from Kmart, Ikea to custom will have something in your price range. I think you need to soften the look with wooden chopping boards, a few rustic elements and maybe a collection of similar items on the top of the cabinets. Happy styling

Tsk tsk... Art at the least is something which resonates with you, for any reason, great Art is a bit different..... Buy a prepared canvas and some colours you like and have at it. Then hang it up on the wall.... I would suggest a large horizontal canvas close to the width of the sofa for that wall.