You have everything clustered at that window. If you would just relocate some to that open wall the space will work better for you. Add a center upholstered bench or comfy chair in a corner.

I have to agree with nudejude regarding the upholstered furniture sizes and positions. The room looks long and narrow, so placing 2 chairs or a 2 seater sofa opposite another 2 seater would allow you to enter through the door and walk, unrestricted, through to the opposite end of the room. An area rug between the sofas, large enough to fit under their front legs and perhaps a clear coffee table in glass or Perspex between would make a great conversation area. There may be enough length to the room to use a console table behind the sofa nearest the double doors with 2 small occasional chairs. A pair of lamps would provide light for the sofa and for the chairs. If the chairs are needed, they can be brought into the main conversation grouping. A Roman blind, with or without the curtains, would set off the window. Throw cushions in a variety of patterns and colour, will add interest to the upholstered pieces. Good luck and enjoy your home.

I take it you are buying new furniture? What is your budget for that?

Hello. I see you posted in December, but if you haven't already re-arranged: 1. I agree wholeheartedly about the roman blinds. (Nifty idea to reuse the great fabric of the curtains. I didn't think of that one ) 2. I'd move the armchair to the left of the fireplace where the lovely vase is. Vase under bay window instead maybe? 3. Put the TV on the wall below the framed photos: 90 cm above floor level is a comfortable height for seated viewing. 4. Then the sofa can go on the opposite wall, it's more welcoming when you walk in the door from the hallway. (To the left of the bay window) As for small L-shaped sofas, the smallest I've seen is a sofa bed from IKEA. Very tidy but I've not tested it for comfort. Has integrated storage for bed covers. Neat. 5. Then turn your rug and coffee table 90 degrees, parallel with the fireplace wall and in line with the bay. (Turning the long axis of these items across the width of the room will make it appear wider, especially where you already have the extra width of the bay.) Without dimensions of these items and the room I can't be sure will that fit. But if you're not already sorted I guess it's worth a try.