I think uploading images will help. While the plan is clear, it still doesn't give any feel of the house..what's the style? architecturally speaking. what's around it? how is the light? what are the materials used? do you like them or not, mostly? what are your own preferences for colors, materials, etc? it's important to understand what feel you're after..and the feel should inform your potential decisions for layout. or so I feel. Because all families live differently..some people open the walls, some try to close them..:) it depends.

So I think if you upload images..if you feel comfortable doing that..it will give us a better idea of space, thus more potential for being more helpful.

I agree with the previous poster about spending some time in the house, "feeling" it better see what's needed what's not..that's a huge help, being in the place when deciding.

And-congrats on your new home!

I remember when we moved in. It was an aging house that needed a lot of work, and everyone assumed we'd be going full bore on the house asap. Others moved into the neighborhood as well, and they were able to immediately tear out kitchens and everything else. We were busy raising kids, with all the financial obligations that go with it. We would fix what needed fixing, and kept it neat and clean. Some of the neighbors were very snooty about their renovations. But all of them have moved, some victims of the economy. But we're still there! Our reno will be done later this month, and I'm glad we scrimped, saved, and really thought about what we wanted rather than just follow trends or the whims of others. So yes, live in it for awhile! That way you really know what you want and what you like.

@Richard G
Just an observation, but there seems to be a lot of space devoted to lounging, sitting/dining and family dining. Moving walls and installing new structural beams is major work and major expense. Still, I'd do it. You don't have to add square feet, rather, stay within the footprint you have, forgoing the expense of having to pour a new foundation. You can't do this without an architect and a structural engineer.

Think about reworking the following spaces: Kitchen, Utility, Bedroom 2, sitting/dining, lounge, front entrance. I'd get rid of all the walls, but save the fireplace. Once you do this, you can put a new utility room in part of where bedroom 2 is now. This leaves you to expand the kitchen to the spaces where the utility room, and part of bedroom 2 was, with a table in front of the fireplace. All of this would flow into the old sitting/dining room, and into the step-down lounge. You can keep the front door where it is, but you'll be able to make a new foyer, signaling the difference in spaces with materials, and maybe your new structural beams.

I'd move the master suite to the first floor where the family/dining room is, and put in a big bathroom. If mobility is an issue, you can also see if there's a place for a small elevator. I'd see about putting more windows next to the french doors, with a large patio outside.

That's my thought. But then, as the big Lebowski would say, "Well, that's just, like your opinion, man."

Thanks so much for the suggestions and apologies for taking so long to come back. My wife (who is eminently more sensible than I), has suggested we live with the layout for a little while so we get a real idea of how we feel the space is working before we make any big changes. I think you are quite right that waiting and saving the pennies for a while so we can do what we really want to is a good idea.

On the house layout at the moment, i really like the idea of moving the master suite but unfortunately the Dining Room is actually a lower ground floor so i think it might feel a bit odd. There are large decks to every side of the house so have attached a couple of images just to give an idea of the space and house style (it needs a full makeover in terms of decor certainly!). The images are actually from the real estate agents website before i purchased the house so it's not my decor (far too busy for my taste)

Your home needs a major kitchen renovation with separating walls removed or some other relocation. To get ideas I'd x post your layout and pictures in the Kitchen forum. A more inclusive floor plan with lots of measurements for door/window opening etc. will be helpful. There's a stickie with suggestions.

I think: congrats! great view, so much greenery..

the house partially feels disjointed -or it's my impression-because of the PO's decor..it's furnished in a way that makes it harder to make sense of it. Different furniture placement will do wonders..or already did

(When you change the decor..and you think to get rid of that wallpaper in the dining..which you might..it's fab, by a very famous maker, if I'm not mistaken of course..if you love it one bit-incorporate it..it will be much cooler with more contemporary/modern things in the room. If you don't love it even one bit-then it doesn't matter of course))

It's hard to understand the master suite thing since it's not on the pics..and the entry..and the bath..since they were the ones that bothered you, would give a better feel if we see them?

I don't know whether your kitchen needs renovation in terms of opening the walls, that's the question of your priorities we don't know much about..but yes, it seems hard to work in it..the sink's too close to the stove, etc..I guess if you decide between things, what to do and what not-the kitchen would be a good thing to work on, to improve layout and functionality. If it something that you weigh in the first place

and if you do-then yes I agree-Kitchen forum folks are the best in these matters. They're wizards there. They'll need your plan, pics, list of needs and wants.

Is the last pic the one of the lower level dining/lounge? or am I getting it all wrong?

there are many spaces for lounging true..what function do you/your family need from your house, and which room can do what? you can reassign the names to rooms you know:)

if you want dining to become lounge-I don't see why not

where does your family usually dine? do you prefer to have a separate dining space, or you like it more casual, or..?

if moving the walls-what's the most important? main bathroom? kitchen, in order to improve function, maybe create more space for that dining? can you undertake all of these?

It's a rather large long disruptive remodel.

Consider what you'd do first

And what maybe you can work around just rearranging and making it function like you need it to.