They're for sale though, right? So they haven't achieved those prices.
Looking at local sold prices, yours looks expensive. Without wanting to cause any offence, the rooms do seem small, and my initial reaction is that I'd want to move for the same reason as you... Can you put some of the furniture into storage? It's not really presenting as somewhere that a family would fit into.
I asked DH if he'd go and view it, and he said probably not as we'd be losing space on our two bed... and then definitely not when he noticed the increase in price from when you bought it. If your only offer has been £40k under asking; it's the price, I'm afraid.