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

Also what type of cladding would anyone suggest?

Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.

Hi Michelle - It looks like treated pine to me, and looks as though it has been recently built. If you did nothing it would fade to a grey colour within 6 months or so. This would probably blend in with the house quite well, and you wouldn't have to do a thing! Otherwise I would stain it - there are lots of stains on the market - see if there is one you like. A dark one would create a nice contrast with the house and make the fence look more like a feature. Good luck!