I live in a 3 storey house with the washer in the kitchen (ground floor) and a condenser dryer on the 3rd floor because of space issues. I also have clothes airers/ironing board etc up there. I have no outside hanging space.
I've always thought the 1st floor is a more logical place for a utility room (in any house) as most laundry is generated on that floor and returns to there. When DD moves out next month how easy would it be to plumb the washing machine into her old bedroom ? It's next to the bathroom.