some more info would be helpful- what is your style? your homes style? favorite colors? what do you like or not like about the previous decorations?

i would like to avoid leather furniture. I also would like to avoid plants since they tend to die on me. I would like to preserve the look of the fireplace so the style shouldn't be conflicting. Apart from that, i am open to any suggestion. Does this information help please?

That does help... sorry a few more questions. Are you keeping the wallpaper? What is your intended use for the room? Do you want a tv? thanks

Where is the door located? on the radiator side of the couch wall?

You called the room a reception room. So, this is not your primary living space? Will this just be a formal area for guests? Will you use it often for that purpose?

Here are a few layout options. Its a large room, so having all the furniture pushed against the walls makes it feel barren and isn't cozy. The left option would be best for a reading room. Put a standing lamp behind the chair in the corner next to the fireplace. Use a cozy tufted ottoman with a tray instead of a coffee table to optimize comfort and seating options. Depending on your lifestyle, you can put a low bookshelf behind the couch with a wood dresser as a liquor cabinet against the wall, or put a decorative console table behind the couch with tall bookshelves against the wall. Or you could do a settee / backless bench on the wall instead of the chair/furniture combo. Personally I don't like how they have the chair blocking the built in, but if you need more seating you could put a small movable wood armed chair in that corner. My first suggestion for the bay window area was a variety of plants, but since you don't like them I would recommend a built in. If a built in is over your head, you could do a Hope chest with some cushions on it. On the right is a more visitor focused layout. Matching loveseats should go across from each other with a chair in the corner and a couch in the same place it is now. The couch and chair should each have their own ottomans so that you don't end up with a weird floating coffee table in the middle like they have now. Put some small side tables around all the other furniture to anchor them and use a large rug so that it goes halfway under each piece of furniture.

@ElleN @d_gw we are hoping to remove the wallpaper and paint the walls at some point, but not sure we can do it straight away. We are intending to use this room for formal guests and as such, will not have a TV here. The door is located at the bottom of the radiator wall. This room will likely not be used very often. I will search for pictures of transitional and see if i can convert this space as per your ideas.. :)

I would start with a large, pretty rug in the center. Put two smaller scale chairs in the bay, with a table/lamp between them. Place a sofa where it is now but pull it forward onto the rug. I cannot see the side walls very well, but you want to place the sofa where you can have end tables and lamps ( do not use the overhead fixture for your general lighting). Angle a chair and floor lamp in the corner near the built-in. Place some books on the shelves.