I would turn the utility into a lootility. We had one in our last house which was a similar size and it worked really well, I have no doubt it helped sell the place. As with ours, your house isn't massive and I don't think anyone expects three sinks, a downstairs loo and seperate utility in that square footage.
To do it, you'd take out the wall separating the loo from the util. Remove the tiny sink and replace it with something larger and more flexible for a second downstairs sink, perhaps with storage underneath.
That would allow you to remove the sink that's presently in the util, giving you an extra cupboard slot and a completely clear work surface. You could then have your washer and dryer side by side, with the boiler above one or other and shelving in whatever wall space is left. In our old place; this section was boxed in entirely by floor to ceiling double doors hiding the boiler and appliances. You're not making any major changes to services or moving walls, so it shouldn't be massive money.
If you're worried about sound, there's additional soundproofing you can add to the walls to absorb loo sounds. Tbh we never had an issue with this.
I would put a wall in to create a hall, as I hate the idea of people walking straight Into my living room from the street; but that is personal preference.