Couch and tv as is. Move the two chairs closer and add another at the closer end of couch.

my suggestion would be to reverse the arrangement and ignore the window with a long couch and up to three single lounge chairs (recliners and/or with foot stools) plus TV and storage wall with bookshelves either side of the fireplace and coffee tables

I would replace the pendant light with downlighting. Remove the mirror & move the picture above the couch, depending on the width & place it above the fireplace. I think the coffee table should be rectangular. I would place the lamp further down in the room, turn the chairs to face the fireplace & tone down the surrounding on the fireplace. If you were to purchase another painting/picture l would buy something vibrant & large. Good luck with finding a solution. Loren.

You could go with an L shaped lounge as you enter so the flow is not directly straight. Add a rug underneath and coffee table to create a room within the room. Two chairs at the fireplace could go on a round rug to create another space.

A sofa with a chaise could just break up the long room, placing two chairs in front of window and another opposite the fireplace, artwork or round mirror above fireplace and tv cabinet , could look beautiful.

Thankyou everyone for your suggestions and recommendations.. really helps having someone(s) to bounce this off - other than my husband who couldn't care less. The timber floorboards and fresh paint/curtains we have going in will (hopefully) make the room feel more modern and 'like us' but I need to get hunting for a rug/rugs to pull the spaces together with some of the recommendations you've made.

One thing I still find weird, is the chairs facing away from the fireplace. Am I over thinking it? I guess it's also weird if they face away from the TV. The one's pictured are definitely not my style so will find something new that looks a little more welcoming.

@oklouise - hadn't considered flipping it over - i guess we'll have to have a play when we get in to see what reduces glare and how long our current couch goes down the wall. I'd prefer not to have a couch or tv cabinet across the window but will do it if it makes the most sense :-)

@HU-640108217 The pendant lighting is definitely going, and the mirror etc aren't ours (they were staging furniture) so will replace them with things that are more our style. We have a lot of natural timber and white, as well as some colourful framed prints that will help give it some more life.

@Julie Herbert really love those pieces you've picked out (more my style). I'm going to properly measure the room up when we settle on Friday, as I like the idea of a couch with a chaise... but will just have to see if I can do that without obstructing the walking space. @Davincicalbourne your round rug idea would help too with the second space.

@CHRISTINE HALL ARCHITECTS LTD - I had considered the TV there, but it's too large so I think it'll stay where it is. We actually already have a smaller, mid-century tv cabinet that will hopefully be a better fit. The alternative tall plant between the fireplace and the window will be a Christmas tree at first - but really like this idea so will find a replacement after the holidays.

Furniture placed for a sales picture is to make place look bigger and showcase features. It is often not the best placement for living in the space

Yeah that makes sense @Kate, the camera angle is decieving too. Its a longer room than typical for this age house but not as long as the photo looks