Hard to tell without dimensions but you if enough room take out wall top of staircase and use laundry kitchen wall get rid of peninsula and put in island but fear your area looks small
This is a small space. Made even smaller with the thoroughfare in the kitchen to laundry. My suggestion is to close up the kitchen door to the laundry. You still have the other door from hallway. This would allow more room in the laundry, and better use of kitchen space. Brick up the window on the left side. Take out the wall (if not structural) where the stove and fridge are. Extend the kitchen the length of your current kitchen and dining, installing fridge and oven on that back wall. Install new storage along the wall where laundry door was. They can be 300mm full wall storage, or a bench and overhead cabinets. Have a large dining table, that can double as a kitchen prep bench when required. I have attached a rough sketch and inspiration photos.
Alternatively, if the wall with fridge and oven can not be removed, because of structural integrity, then my suggestion would be to, block kitchen/laundry door. Take away peninsula. Extend bench along back wall. Dining table to be moved towards living. Purchasing a table which is the correct size for the space.
I good starting point is to think about how you use the spaces.
That is, opening up a wall if you like to have people gathering around an island bench when entertaining. Also, fit out your kitchen in a way the facilitates the food/cuisines you cook.
Lacking some info but I could see removing the nib wall near the fridge and running a galley layout then have a large island unit which extends into the dining with a seating section..
Susan Ballard
Kate
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