Depends on your budget and your patience and how this will blend with rest of your lawn.If you have a small area then consider using turf for whole area patching it can look piece meal if other parts of lawn are patchy.

If a large area then seeding more cost effective autumn a great time to do either but ground preparation essential to get best results .

You don't seem to have much room to sit. Have you thought of perhaps more hard surface, a round or curved lawn and herbaceous borders.

Hi, Actually, I think my picture was a bit mis-leading, we have actually just had a huge raised deck built (see profile pic) the pic was just an example of the state of the ground, which is now directly in front of the decking. We have 2 young children, one of which frequently kicks a ball around. We wanted some lovely grass and was going to put some big planters around rather than plant anything directly in the ground to be destroyed by a football! Thanks for your comments, I remember a neighbour who designed a beauful curved lawn in her garden once and it looked amazing...wish I was that creative! :- (