we pay a bit more than you a week, but one have a one bed flat. we squeeze in to reduce commute (both time and costs) and to live in a nice location. we actually have enough space though imo, and are close to hyde park etc for outdoor space. (have small balcony big enough for bbq/ children chalking/water play/ sandpit etc- well one at a time)
children both in cotbeds still along one wall in bedroom. we also went minimalistic to save crap being stored. family know not to buy kids too much as havent the space.
everything has storage. so drawer under cot beds contain kids spare bedding, winter/summer clothes not used depending on season in one, and toys for rotation with ones out in the other. we have x4 drawers under king size bed.
sofa bed for visitors in lounge. dining table has storage in the middle. coffee table doubles as a play table for lego/trains etc and has 4 stools underneath that can be removed for extra seating. they open up as storage as this is where lots of the childrens toys are.
we didnt buy many 'child/baby related' things. so a baby gym that fodled behind sofa, but over a baby sheepskin rug, which we still use now as regular rug. clip on small highchairs. so no space used on floor. baby mat just added to a dresser in bedroom. one cotbed each. no moses basket/ cribs/ swinging chairs. buggy thats folds small and lasts 0-not used (bugaboo bee)
we sold all adult books (except referenc ebooks) and have a kindle each, no dvds etc, as subscribe to love flim/netflixs instead. only childrens books.
basically everything has two uses.
we dont have space for kids to run about etc, and they have learnt to be considerate of others if they are asleep/ill etc.we are members off all the local zoos/ widlife places/ national trusts/museums (which family members usually pay for annual membership as xmas/birthday presents instead of excess toys we havent space for, which is great). so we spend a fair amount of time out each day. the children have head to toe wet weather gear so can wallow in mud/puddles all year around!