This is really a utility area. You have a washing line, an air conditioner unit, which are noisy, and a hot water system in that area. I would not be spending a great deal on flooring. I would purchase more planters for flowers and vegetables and put them along the fence line. I can see your small outdoor seating is in the corner, because it would be in the way for the washing line, but ideally have that in the middle or to where the cat is sitting. Then lots of flowering plants and greenery along the entire perimeter of the courtyard space. This is something you could do yourself after a trip to Bunnings or a similar retail shop. The concrete ground just needs a good sweep. If you install decking then this may need ongoing maintenance and not really achieve anything. Don’t pay money for someone to do this job, when it is quite achievable by yourself, and fun, and satisfying. If you are not physically capable then a handyman gardener would purchase and pot all the plants.

Oh..and maybe a mirror on the far picket fence to visually give more space. As per the above photo.

Pulling up some concrete would be the best outcome, allowing drainage and soil for some greater planting. To soften the fences

There is a lot you can do yourself quite economically.

I suppose you don't know for sure if the concrete is reinforced or not? That makes a difference to removing some of it. Even breaking through unreinforced concrete is a big job. We did a small amount ourselves but it might be worth getting a quote from a concrete cutter for a quicker neater job. Plants in pots can need more maintenance than when in the ground, so I agree that increasing garden beds has benefits.

On the other hand, it's not necessary and you could do quite a bit with pots.

Can you post a picture looking the other way? It appears you have a small garden bed. Is the picture taken from where the access is coming out of the house? How much sun does the area get, which way does it face? That makes a big difference as to what you can plant there.

Thanks all for the tips! I definitely agree that digging out the concrete and putting new flooring sounds a bit daunting. I do really like the inspo pic you posted @dreamer and we might paint the concrete a more neutral colour, as well as some screening on the ugly fencing. You've all given me such great ideas and the confidence to attempt something myself!

You could add a screen behind your planter box on back fence, even a mirror as suggested would look great, you could hang this also on brick wall, plant up garden bed with lush plants or veggies, run wire for a climbing plant, beautiful planters finish the scene, you could paint your pavers or add an outdoor mat.