I love your fireplace. I would not alter it. The door and the floorboards draw your eye straight to the fireplace. I wouod definitely alter the light fittings. I would have the tv on the dining room wall to the right of the arches. I wouod have one lounge on the window wall opposite the tv and a chair in the corner if there is enough room. I would have an eyecatching wing back chair to the left of the fireplace opposite the dining room and white lacy soft curtains softening the window wall. To the left of the fireplace near the dining room arch you could add some interesting decorating piece. I would concentrate on making the fireplace wall the focal point of the room and the tv corner a secondary focal point that is soft and relaxing. You could trow down a couple of beautiful, thick, soft floor mats to soften the brick and provide a texture contrast. Overall, I love the room, it has character and strength, its not boring and mundane. Good luck! I hope you find something that suits both you and hubby

Without knowing exactly what your layout is, I throw this idea up, to be shot down by those who know better than I do. You have "a beautiful navy two seater." You have a new baby on the way. You're on a tight budget. Why not keep your existing furniture, buy a nice chair to fill up the gaps, and an inexpensive carpet which will withstand baby issues? To me, a home is something to be lived in, that fits my lifestyle and my budget. If my home isn't every going to figure in a design magazine (and it isn't), that's okay, because I don't want to be sitting up nights worrying about bills, or splashing out money for cheap furniture that looks good but doesn't last past the second child.

It is an awkward space for sure. I think the Xmas tree arrangement is best. I’d add sofa tables to bring the furniture off the walls and to give you somewhere kid friendly to rest a drink. Then maybe layer a colourful rug over the existing rug to add colour and give a focal point in the absence of a coffee table.

There are existing recessed motorised roller blinds (pale grey). The room is used as a kid's play space by day and an adult living room by night. Toys are stored in bedrooms at the end of the day and the dolls house is not a permanent fixture!