This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.
Sitting Room in Farrow and Ball 'Mizzle' - Living Room Design Ideas & Pictures. See all our stylish living room design ideas, including the London home belonging to House & Garden's decoration editor Gabby Deeming.