I agree with lefty. Really think you should cut back the area. Even if you don't pave in the degraded area just plant it will look larger. Two levels shrink the space one level feels more like a room. Also I can tell the fence is your neighbors because the rails are facing your side. I would face the fence so that it looks better in your side.

This made me laugh: http://www.theguardian.com/environment/2016/jun/09/seagull-turns-orange-after-falling-into-vat-of-chicken-tikka-masala I couldn't copy the picture, but it's hilarious.

I think something like this would be perfect for what you're trying to do! Except, you don't have the earth to help you out. Potted plants should be fine.

We are almost finalising our first home plans and would love some help please. Our list of "wants" clashed with our budget and we had to downsize a little. If anyone could help would be much appreciated. Bedroom 1 we are pretty happy with but would love to include a small study nook (just big enough for desk top computer and a chair. Bedroom 2 lost its WIW unfortunately ... would it be possible to put a wardrobe behind the bed and reshape the ensuite to lengthways? Any help would be most appreciated. Thank you all so much.