LVT would get my vote. Easy to clean and you can use a steam mop on it too.

We are coming to the end of a house renovation and we had wet UFH installed in all our rooms. It is a bungalow however, it is very unusual property with rooms below the bungalow so it is like a house in some respects. We have a mixture of solid floors and suspended timber floors and couldnt have a screeded system because of the weight. We had an ESP overlay board system installed and have found it to be very effective. Ours is run off an ASHP so I cannot tell you how it would work off gas central heating. Our UFH is on 24/7 controlled by thermostats in each room/area. We did install internal wall insulation on all of the external walls and window reveals and voids beneath the floorboards where possible and my understanding is that this is key to efficient and cost effective UFH.

If you made outer wall then its okay to build window on the side, your neighbor privacy will be maintained and you can get the sunlight needed, I would advise to move the garage to the front so it can be accessible for a car from the main road, you can still have direct path to the garden from the front if you move the enterance to the right and just put a fence, if it were me here's the layout i will do, it'll give more space for closet, bigger bath, utility room, and additional storage unit, so basically move the wall to the left and focus buildng that side, the previous garage will become the new master bedroom with en-suite

oh old post to practice, the obvious choice is first floor extention but this only if the ground foundation on the back supports for this floor. Its mirroring the outer wall of the ground floor so enough area, there also alternative option of cantilever steel beams or concrete floor slab for first floor side extention though maybe need additional permit . Bedroom 3 will slightly Bigger than original, Plan A Plan B - Very Narrow Hallway Plan C - With Cantilever