Not sure where you're located, but a gravel driveway may help to soften the house versus asphalt or concrete. Soften up the area with grasses. Here's a link to a photo of grasses with a hot color palette http://www.spacemakerpress.com/catalogue/catimages/st05imgb.jpg You can always choose a more muted color palette as well. I would definitely tier the plan heights so they're taller against the house and gradually get lower. It would help to bring the house to human scale and not appear towering above. The pathway could be in a natural stone - the same color as the gravel driveway (if you can do gravel).

There is no common link, no continuity that each dwelling share. i would introduce an element to both structures, borrowed fm the other, so for example the red brick and windows are the most striking design elements in the house, however the rendered garage with a parapet and no visible roof may as well be from another planet, I would brick up the front piers aside the door, with matching red brick, and then I'd install some post and beam rafters that could extend over beyond the garage door, almost like a flat eave, however just beams, no roof, and paint it chacoal, I'd then link a path from th garage to the house, and create the same detail at the porch entry of the home, same beams, colour and materials, so it looks like they belong on the same property. also, perhaps a little scary to consider, i would render the wall in between the door and the first window only, and paint the front door in the matching blue. Windows I'd go charcoal as per th beam structure, and apply a stained timber batten to the flat parapet above the garage, so paint that black, then fix timber battens vertically wh enough spacing to see that black shadowline, it will modernise it, emphasising the elongated design, which is both contemporary and popular, and tie this timber detail into the house with a generous deck. Both timbers will link, over scale th deck, perhaps stagger a step or two, as the garage is over scaled also. remove the fence, and landscape the corner with over scaled shrubbery, a meandering path to help invite ppl between the two structures., the visual disconnection is the fence, but it translates into everything else. if a fence must be, then consider a half height one, or an informal row of sleepers as uprights, to softly define the yard.

I had a similar situation replacing a thin porch roof, the down pipes that spoilt the simple lines that the posts and flat roof had, basically down pipes just looked just looked heavy and ugly. I fitted the gutters in level as these are short anyway and don't need a fall, but left off the spouting. Then by suspending a heavy* galvanized chain from the centre of the outlet down into large buckets set into the ground, which is filled with rocks or small lumps of concrete, the water will trickle down the chain. (that is a thicker gauge, not heavy* weight). You might also want to anchor the bottom of each chain onto a lump of concrete. You don't have to anchor the bottom, but you don't want anyone to be encouraged to swing on them. Obviously you won't see the buckets, but do need something to capture the water that runs down the chain. Small holes in the buckets allow water to run out gradually. The chains will hang down straight under there own weight, the look is more 'elegant'. If you get so much rain blowing off the chain that it blows onto the posts or house, it's very likely you won't be standing outside, unless you like getting soaked.

A very simple layout keeping the floor space within the kitchen, the WIP takes up a lot of space with not much gain, The broom cupboard could be moved to the Laundry/entrance, narrow. If the wall has been bumped out to the eaves on the deck side giving an extra 300 depth to the kitchen you could make the island 2700 x 1200 and all drawers. The wall of narrow pantry will hold all pantry needs and more, no deep cupboards to dig into. cheers