Thanks, good point that it might need replacing in not too long and could be addressed then. I'll also consider the paint and other options to draw attention away. I'm sure with lots of books on the built in a when they go in, there will be some distracting colour and thinking a white ledge across the mantel to tie in the new built ins on either side ... We had been considering changing stone surround to some painted white panels, but thought stone might be warmer/ more character. I've seen some inspiring pictures in this thread and on houzz. Thanks all!

I have not read all of the above. It must be tempting to render and paint the fireplace but if it is decided to work with it then maybe you can find your colour palette in the bricks. The new grey carpet will give you a fresh neutral but grey can be very cold. you might need a bit of warmth in the others colors chosen for walls or soft furnishings. If you extend the tile base in front of the fireplace that will give another opportunity to introduce more impact with the tiles. There are always lots of gorgeous tile options. I am loving some of the Moroccan looking styles.

I would suggest keeping the brick fire place with a clean up to keep the character. Agree paint the ceiling panels white however keep the beams as the are (if in good condition) to keep the character of the home. Paint the remaining walls white or light grey. The 1/2 brick white wall and timber paneling on the right side does need to come out to help you create the open plan space you are craving. The kitchen area - I'm not sure of size judging by the photo - I would suggest storage/cabinets the full length of the back wall to the windows where the dinning table is and cabinets/draws under the window also. Giving you plenty of storage for the home. I would suggest an island bench with a lower section to use as a dinning table. All your storage is in one place and allowing you to remove the storage you have across the bottom window in the lounge room. giving you more space and more light in the room. Or paint them white also. If you can remove the window coverings and replace with lighter roller blinds that disappear in the white walls or even white block out curtains. Good luck with the project from the Team at North.

strip part of the brick and mantle back to orignial if the exposed colour lines up with the room, strip the whole thing. Looks so well crafted not to pay respect to the past