How old are your kids? Why not do the window seat and bookshelves now?

I really don't think that the "hall way" landing area was meant to specifically be used for anything. I love the idea of having a bench seat and book cases built in around the window. I wouldnt do anything more than two large console areas with lamps on them on the wall area and maybe two small scaled chairs on either side of the console.

Our kids are 2 and 4 and we just moved in so don't really want to invest in a costly construction project at the moment.

That’s a lovely area. We had a window seat in our home when our children were younger and while it looked great, from both inside and out, no one sat in the window seat. You may want to consider a big comfortable chair for reading together. The children grow up so fast. Before you know it they won’t want to snuggle with you.

Your home looks roomy and lovely so not sure what you need that space to be. When my kids were little, play space in their rooms was at a premium. I could see me setting up the kid furniture in that space for creative play i.e. toy kitchen, table chairs. With a future construction plan in my head I would not throw any money into it now. I would save it for the finished product.

We think it might be a nice area for a rug, two chairs, and perhaps an ottoman. It could be a great place to read to the kids at the moment, or have them read to you.

Lovely idea to set the area up as a quiet space to read to and cuddle with your kids. That's easily done, and is something you could start enjoying instantly.

I see that hallway and think of all the great car races! (Matchbox cars- get a bunch at yard sales. They are FUN!)

If it were my hallway I’d put in bookcases in the Hall area and then a couple of comfy chairs with a table by the windows. Not need for fancy built ins. You can get gorgeous solid wood bookcases at a consignment or resale shop for reasonable prices. Take excellent measurements with you- you never know when you’ll happen upon something perfect.