Hi mv5869 Thanks for taking the time to offer your suggestions. As it happens I have replaced the fireplace. I am very grateful for all the suggestions people made and they gave me lots of food for thought. I was going to post a photo to show everyone who commented the "after" pictures but was waiting for it to be completely finished so you could see the full effect. I seriously considered a reclaimed Victorian surround and insert but in the end I decided it just wasn't what I wanted. I called in a local specialist and he built me a fireplace with a Bath stone surround and black slate slips and hearth. We in put a gas insert fire. I absolutely love it. The natural materials are gorgeous and in my opinion the design is contemporary but classic. I can turn the fire on when I get in from work (usually late) and I really enjoy the fire every day at the moment. It wasn't a cheap solution but after years of fretting about this I have exactly what I wanted. I will try and add a link to the specialist in a minute. As you can see I took up the carpet and sanded down and varnished the original boards. A few boards needed replacing but a local reclamation yard was able to supply reclaimed boards. The pine came up quite bright but I like it! I also had bookshelves built in on the right and painted white. Thanks so much for suggesting this it looks amazing. I am in the process of reinstating some of my possessions but trying to be selective about what I put back. It just takes time to sort it all out. I went for what I thought was a neutral colour on the walls but it turned out to have a slight orangey tint. I am happy with it. The new sofas are orange so I haven't lost my strong colours altogether! there will be a rug as well so when it is all in place I will post another picture of the finished effect. Tim Davis Stone and Fire

Maybe try a very pale but warm olive colour? You could warm it all up with raspberry colours in cushions, rug etc. Are you keeping the beams as they are? If you don't want more green try a pale stone on the walls or a very light duck egg

I think its got loads of potential. You could go for wooden flooring laid across the shortest length of the room which will make it feel wider as will the use of mirrors. I would do away with the coving which will add height. If you get rid of the chimney breast it must be taken down completely or any parts left supported with a lintel. The TV could go above the fire place or under where they have the mirror in the picture. Keeping the furniture and flooring light with colour in the soft furnishing will keep it open and airy.

Hi Sue, Its best to get a chimney specialist in first to make sure that the fireplace flue is properly lined, and then they can advise the first steps to move forward. I am sure the end result will look great.