Good that the heat/air system is over the door and doesn't interfere with your decor too much. It appears the ceiling fixture to the right of the FP might indicate that the dining space is there. Put a sofa in front of the FP and two small accent chairs with it, facing each other over a round glass coffee table. Can you wall mount the TV left of the FP? I think the room is too narrow to put the TV above the FP - you'll strain your neck. If you mount it opposite the FP, a sofa and two chairs could work but will need to be small scale - try apartment-sized seating. The sofa could face the window with the chairs opposite it. You could turn to see the fire or to watch TV. Swivel chairs come in handy in such tight space.

Hi everyone, we have moved in! We didn't manage to paint before we moved and think we will go for a staged approach - above the wood panels first in a warm white then decide on the panels. I'm having a bit of trouble working out what kind of sofa to buy and how at arrange the lounge. All furniture except coffee table temporary in photos and would love some ideas!

Well you posted this several months ago, but I thought I would make suggestions anyway. Hope you don't mind. In order to stay with or keep in mind the style of the shelves I would first change out the towel rack and TP holder to a chrome, or brushed nickel finish. Or get something that goes with the water faucet on the sink. If you are going to paint the wood around the shower base, paint the window trim and pieces of baseboard that are wood as well. I agree with using a gray color that adalisa, above mentioned. Maybe paint your vanity a darker gray, or even a shade of black, like your shelves to tie it in. That's it for me.

Thank you everyone for your ideas. We are about to paint the walls an off white - double merino, and thought we might paint the doors and pelmets the same and now after reading your comments I think we will leave the timber beams and paint the ceiling between them the same as the walls, and will consider the bar supports too. What do people think about painting ceilings, doors and walls the same colour?