I am posting here before I head of to google this matter.
Firstly, we are not in the UK. We are 10° north of the equator and so its hot all year round. It varies from insane to unbearable and when the temp dips below 25°C people will talk about how cold it is.
Given this setting our place has tiled floors throughout and these go up the walls for about 1.2m. External doors are left open all day and the french doors to the balcony are never shut if we are home. The bathroom 3.5mx3m and is a wet room with a drain in 1 corner, a toilet and a shower (not heated). There is a 2" step at the doorway and my kids love to plug the drain hole and flood it. They then try to keep most of the water in the bathroom and fail but I don't mind too much as it just mops up and dries in seconds.
Anyhoo, when they do this, and shower, go to the loo, brush therir teeth, get changed... etc etc they do it naked, clothed, partly clothed... they don't care. They both have swimming costumes and DD likes to wear hers sometimes but not because she wants to cover up. It's more a case of "I'm swimming so I need to have my swimming costume on". DS will wear his trunks if DD wears hers but not always.
In the wet season when it rains they love to play in the rain with their friend who lives behind us. The downpipe for the water that falls on the roof ends in a 45° bend that just directs the water to a drain about 5 meters away lol. This is about 2 feet up off the floor and provides much entertainment as they slide across the tiles with the torrent of water it produces. When ever they do this though they always wear underpants and shorts. I never have to correct them on this and neither did my mum when she let them do it the first time. They know its "outside" and also their friend, while the same age, is not family and so they have to be covered.
They are both aware that when on the balcony they should be covered up so "no one can see their bums". Though, again, there are lapses here and they have to be reminded.
Its like they can see their bodies are different but they haven't thought to stop and ask "why?"
My mum, who was living with us until her death last year, was of the opinion that DD will cover up and become aware of her body in her own time and I tended to agree. Let them be kids for as long as they can, free of the restrictions we, as adults must face. So I let them be.
But I would like to hear what people here think.
Additional info that may or may not be relevant.
my DW, who may or may not be my DW soon for reasons I will not go into, is not around and has not seen the children for 9 months and there is a possibility she may not get to see them for a few years.
Public schooling here is not like the UK. So they both attend a private school where they are doing a combined international and local school program.