Put the 3 seater against the far wall, beneath the soon-to-exist painting. Put the 2 seater to the left of it (so it's an L-shape). DON'T close it off, it looks awful. Bring the furniture in towards the middle of the room a bit, so it doesn't look so timid! Turn the coffee table around 45 degrees so the long side is now facing towards the kitchen. And yes, you definitely need a rug! Good luck! :)

Personally, I'd paint the walls, doors, skirtings, cornice and ceiling the same light colour - I'd also see what could be done with the lights - they're cutting off the height of the room. Think about closing off entrances that you don't need and if you are unable to do that, then by painting doors the same colour as everything else you're lessening the immediate impact of the entrances. I'd also go for curtains that match the colour of the walls - the idea is that your eye moves over the room rather than landing on one surface (I'd use textures rather than colour to bring interest and a sense of comfort and luxury to the room). If you're looking to keep the room as a lounge/living room - I'd be tempted to go for chairs rather than lounges to give the illusion of more space and more flexibility with lay out. As the lounge in the photo just looks as though it was too big and you pushed it to the side to make if fit. I'd also streamline all furniture you have for your entertainment - go for narrow unit and mount the TV on the wall. For any wall art - I'd elect to get rid of anything small and go for long rectangular pieces to add to the height of the room.

I would agree with D'Cruz about the layout but would suggest allowing 800mm space bewteen the back of the sofa and the balustrade for circulation. The room looks like it has the length to accomodate not having all of the furniture pushed to the edges. The other option is to replace the balustrade with a dwarf wall about 1200mm high for that length of the void, but leave the remaining balustrade as it is. Although 1200mm won't stop a determined climber.... Best of luck, Dr Retro of Dr Retro House Calls

Thank you sooooo much Kate & dreamer for your comments and sketch - can't thank you enough!! Kate - you are spot on! the previous owners had this room styled for relaxation/garden view, however for our family of 4 - the function is the key thing. Dreamer - your sketch is super helpful! exactly where I put the TV - and feels the most 'normal'. I might change the furniture to your suggestion. The 2 seater cream couch fits where the chair is, without blocking the bedroom access. Do you think better? Unfortunately the french doors open inward, and recessed sill's won't allow the change :-( Here are some photos...I am wanting to replace all the furniture/this is all from the Op shop Iv had for years. I can clear the clutter...but would love to still keep some books/musical instruments in there - maybe all in a different unit (tall) with the TV/books included? A friend suggested a big tall corner cabinet with the TV inside, on that corner wall directly opposite to dreamers sketch..which I thought about, but unsure on also I am so appreciate of advice - and would love to hear more of your thoughts, any furniture tips welcome too :-) Thank you!!