At this age you should just ask for favorite colors, and then you pick the complimentary covers. Real privacy demand won't happen until about 11 - 13, so right now just concentrate on making it beautiful. If it is pretty and functional, they will love it! Buy furniture pairs so when you do split them up they each have basics. Advice about dividing the room generally is good, but you don't want big sister declaring any territory! There is a crown detail you can do over a bed that includes curtains down on either side - can provide privacy when you sit up in your own bed - consider this as they get a little older and won't pull it down while hijinxing. If it is beautiful and the textiles are in a color they love (or two colors that work together, like pink and lavender on a spring green or taupe wall &/or turquoise and spring green on a buttercream yellow wall ) - then they will see that they can also be different people who are harmonious together. At 7, she is old enough to pick a great color, but don't ask the 5 year old - her taste is changing daily - just surprise her with something all her own that works with sister's pick. I like the look when people select soft goods that match except for color and find one great print accent pillow that ties colors together for both beds. Stay with neutrals on furniture - you can paint out different stuff so it is tied together with pale gray paint. Think mostly about function - Add shelves and cubbies that hold baskets for stuff - stuff changes but they always have it. If you have room, give them each a desk as they approach 5th grade.

Thanks houssaon and rinqreation! Funny - hubby has the same 2 door hate! It sounds like I'm being outvoted on the shared ensuite idea. :) We've actually been set on both the configurations you suggested, we moved away from yours houssaon because we really wanted to keep a closed off office space (and hubby built the front deck and landing already for the door at the end of the hallway!). And I don't know why we shifted the door on the bedroom back to the same area, I think it was about having easy access to all the kids bedrooms. But maybe we should shift it back as you suggest rinqreation. Joice, the door at the end of the hallway is the front door, the entrance closest to the street, that you would come to first if you were a visitor. Not totally necessary, but we reinstated it before we decided we wanted the entrance up the stairs (middle bottom) which would be under a carport. Thanks for all your input!! It's really helpful to have some unattached opinions. I'm keen to hear from anyone else on the shared ensuite or 2 door hate question! :)

I have just taken a couple more pictures (excuse the untidy house) from the stairs. As you can see it's an open plan area that isn't that big but very high ceilings also in wood (Macrocarpa) with dark wooden beams. The house is surrounded by bush so quite a dark house. I initially considered a darker wood similar to the beams but not sure if that will make the house appear smaller / darker...I'm really not sure what to do!?!?!? Thanks

We had the same issue in an old kitchen, we went with Coopers, There is a stripper then wax that will soak in. The stripper is in spray bottles, but I'd send the dogs on holiday or keep them outside while you're doing it. It'll take some elbow wax, but will look amazing when you're finished. Good luck!