I see you have a second post about this specific area. Add it to your other post. Would be good to decide if fireplace is to stay or could be removed. I had one at my place removed to allow for an extension and relay out of house.
I say don't be afraid of the negative space, embrace it. The fireplace is located such that it can be enjoyed (at least partially) from the lounge, kitchen and dining - pretty rare for a single sided fireplace.
Maybe get nice comfy rug to put in front of the fire and that all you need (the rug should be located beyond the hearth or course and go for wool as it will be naturally more fire retardant than a modern plastic fibre one).
OR
Hanging egg chairs in front of the fireplace. Pretty out there idea but at least you can take them down if you get sick of walking around them.
Kate
oklouise
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