Redo family bathroom or install new downstairs loo

[Bathroomwoes]

Please help: what would you do?

We moved into a new house a year ago with a very dated upstairs bathroom with a disgusting carpet. We ripped out the carpet ourselves and lay leftover planks/odds and ends from our new engineered wood flooring downstairs over the dirty existing floorboards. They cover the main flooring area but don't go all the way to the ends - makes it usable but doesn't look great.

The side of the bath was nailed to the carpet so we had to take the nails out to remove the carpet. This has resulted it the bath side breaking a bit and wobbling/falling out a lot (although now wedged in with a packet of toilet rolls!).

We have been saving to redo the bathroom, ideally this summer. Our projected costs to redo (new flooring, wall hanging toilet and sink with cabinet, new bath with good quality thermostatic shower over bath, new wall tiles etc) are £5k all in. Atm we have approx £8k in savings so feel concerned this is taking us too close to the brink. We're managing to save around £1k/month.

I am now wondering whether instead we should focus on putting in a new downstairs loo and just do minimal refreshing upstairs. We have the space for a downstairs loo and I'm hoping it would be cheaper although maybe I'm mistaken. It would involve drilling through concrete in the space at the end of our kitchen to lay the pipework. Has anyone done something like this and can you give me an idea of costs? We would also need to put in a stud wall and probably 2 or even 3 doors as the toilet will block the existing door to our study, which is at the end of the kitchen.

For the upstairs bathroom, I think we could manage by doing the following diy: sanding and filling between the floorboards and then sealing with varnish. Securing the side of the bathtub. Installing a few shelves (currently zero storage space). I think this would be fine for another year, until we can save up to do it properly.

It would be so nice to have a downstairs loo! We have 2 small children and it is a real faff going through the two stairgates on our narrow staircase to get to upstairs loo. It is also significantly putting MIL off visiting! Morning loo rush is also challenging espec with morning showers thrown in.

Thanks in advance!!

Put another way, do you use your downstairs loo more than your upstairs bathroom? Which do you value more?

I’d go with the downstairs loo, especially with two small kids. It also means guests wontneed to use your upstairs bathroom.
In the meantime I’d put some Lino on the bathroom floor, buy a new bath panel and shelves or a cheap storage unit - max £500

I'd def go for downstairs loo. Tart upstairs up a bit yourselves and get done posh further down the line. If you have loo downstairs, no visitors need ever see the state of upstairs!

Good point chocatoo, I know the upstairs bathroom is clean and hygienic (the bits you have to interact with at least!) even if it looks bad, but I always feel like guests will be a bit grossed out or think it's unclean

I think a downstairs toilet would also add value to your house, as well as making life easier!