Ok, well apologies in advance, but pics are making the walls look more washed out then they are, and I possibly could have gone one more shade darker in Sherwin Williams...but furniture is dark, and I did not want it to look oppressive.(ignore my recliner, please, LOL--and my couch is not raspberry colored, but deep wine...ugh, limitations of cheap camera). Anyway, I have several Karastan carpets, same pattern, but despite them having every color imaginable, only certain wall colors work with them. I opted for SW "bagel" in LR and "Earl Grey" in DR.--basically going with a complimentary color scheme (orang-ish and blue-ish). Again the DR looks darker in person. The only thing that bugs me is the whiteness of ceiling...but I was not brave enough to do the color on ceiling trend. Beryl, I doubt that this is very much help, but glad to share pics. Incidentally, I have several decorating books from the 80's. I find them much more fun than modern ones in that things like your hall tree, especially since it is a nice piece, could be incorporated in your intimate space by hanging fun collections from it (like funky old hats) or ornate walking sticks in the umbrella holders, etc. I just cannot seem to banish clutter, so I embrace it. ;-)

In addition to my post above...having lived with a fire set in a wall for many years with a vent to let the hot air into the room...I'd do neither of the above....except maybe old cabinets of well seasoned timber and not new built ins up against the wall enclosing the chimney. The heat from that fire and from the vent would affect the cabinets, dry them out, make them crack...especially since timbers today are not well seasoned as when the fire place was built....That enclosed chimney/flue would radiate heat as well...There's a reason why the walls each side as well as the timber shelves are a dark colour and there's nothing built into the spaces on either side. Installing the cabinets and painting them a pretty light colour might look good for a while but not if you intend on making good use of that lovely fire place. I've lived in my current 1900s house for 32 years and have come to know the why's and wherefore's about timbers and heat in old homes. One longs for a lighter environment sometimes but this needs to come from other sources rather than anything against the fire place. Its a bit of a blocker to renovations at times but again, with Wuff, "Embrace what you have"...read up about homes of the same period, surf the net...you'll find some beautiful solutions. Here's one....you could clad the walls either side of the fireplace with a fireproof stone cladding...enlarge on that...may not be your 'cup of tea' but for what its worth in making your place "yours".

I honestly can't beat the suggestions that have been given above, but yes, de-clutter the desk area (clock, wastepaper bin), find a large print to go above the desk (this will draw the eye first), replace the desk chair with a nice upholstered chair that fits better in a lounge room something like the upholstered dining chairs that are popular at the moment http://www.westelm.com.au/mid-century-upholstered-dining-chair-velvet-h2338 (if budget is tight, even Kmart have similar?). Finally, I do think the warm earthy tones of the walls/carpet/curtains are jarring slightly with the cool white & aqua tones of your furniture. Possibly repaint the walls, ditch the cream curtains? The carpet you probably will want to leave, but I think these other colour changes would probably make enough of a difference. But that outdoor area is so lovely, I would try to bring that in, with a few indoor plants in the corner, plus mirroring some outside. Then also potentially a mirror on one of the adjacent walls will bring in light and reflect the outdoor view into the room. I wouldn't stress too much, it's a great room and settling in, tweaking and 'nesting' takes time!

As you haven't supplied any measurements, it's a little hard to gauge the correct size of the lounge etc, however, I would definitely take the dining table out of the lounge. Like oklouise, I would set that up in the kitchen area. I would opt to place it hard against the laundry wall and pull it out into the kitchen when it is required. I would also opt to have a narrow table that could be lifted to become fullsize. How friendly a terms are you on with your landlord? I would be putting a good case forward to him/her to install a heat-pump high on the wall above where the dining table is in your pic. There looks to be an area outside the WC wall to place the outside unit and it would be very easy to duct through to install the inside unit. While at it, get the heater taken out. Hopefully, the landlord would be able to see that a heat-pump would be cost effective whilst freeing up the corner for you. Do a little research beforehand. I would put the TV, and other lounge cabinetry on the white wall that backs onto the kitchen and if possible, around the corner slightly, where the heater is. That would free up the remainder of brick wall that has no window on it, for you to arrange your seating. As already suggested, I would also set your guitars up near the base of the stairs. Thoroughfare from the entrance, to the stairs, to the outside and to the kitchen and bathroom needs to be an uninterrupted flow.