One possibility would be to swap the living room and the dining room. Since the current living room is larger than the current dining room you could still keep some comfortable seating (couch and upholstered chairs?) against the front wall for a keeping room/dining concept. Then your new dining areas (kitchen and dining room) and living areas (living and drawing room) would have good flow between them, which would work well both for family and entertaining. You could also add some builtin bookshelves in the drawing room or new living room to create a library area to add another fun element to the living areas. These bookshelves could be against the long walls in the drawing room, around the window with a window seat in the living room (former dining room), or built to create some separation in the open area between the drawing room and living room/stair area. Your plan seems to show some sort of builtin there, but I'm not sure what it is.

Your rugs are beautiful and very good quality. They compliment your property well. It is natural for wool to shed at first, but it will eventually stop. You can get a special carpet rake or use a broom to rake or brush the carpet weekly and also vacuum it once or twice a week. The shedding should stop after a few months. Once you get through that period, you can enjoy the many great qualities that wool has. It is extremely durable, more stain resistant than most, flame retardant and self-extinguishing, and it actually regulates temperature & humidity in the home by absorbing & releasing moisture as needed. That's how it amazingly feels warmer in the winter and cooler in the summer. Good luck! Don't give up on your rugs just yet!

Studio Chippan has given good vastu based suggestions in the absence of directions. The guidance for the window seat is also sound. Alternatively a high window seat can be made with provision for storage beneath. The bed can be placed on the long wall (16’) in the centre or slightly on one of the sides so a sofa or a worktop can also be placed as required. If the bed is placed further from the door, a TV can be comfortably placed on the the opposite wall (outside the bathroom).

I wish you all the best for your renovation. One of the most positive thing about the house is space looks convenient. To start of with the designing, 1. first let us start with a creating a focal point, now that the sofa Color is Blue, let us try creating a palette (photo attached) starting with blue, so we can paint white Color on the walls. 2. let us put on two mirrors on both sides of adjacent walls of the curtain which makes it look spacious and reflects light. It gives a cool effect. Even when the curtains are covered. 3. U many use a rug to match the Color of sofa and white walls. Make sure the rug is either beige or a combination of blue, white and grey hues. So that it complements everything well. 4. U may paint the wall behind the TV grey or give it a wooden panelling effect with wallpaper or tiles. That makes a focal point. 5. Increase the height of TV stand with Aluminium or Stainless steel rods, u will find them in the market and paint it white. (Photo attached)