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What can we do with our failed grass area?

Hello all,
Last year we did a pretty much total renovation of the garden. New decking, shed fencing and grass area. We live in a city centre so it’s small but we wanted it varied. It turned out great. However, one major point has been the utter failure of the grass. We bought quality strips of it early summer, laid it with the soils recommended by the garden centre, stayed off it for 3 weeks (we were told 2) and kept it very well watered. It was fine until we (only gradually) started to walk on it and put one of our small four legged garden chairs on it. We weren’t careless, playing sport or anything etc at all on it, but it just started to fade, we were noticing patches starting to form (even in areas we just didn’t walk on). It didn’t get any worse and we thought we would just get rid of the patches in the spring. However, come late summer we did a final mow which it didn’t seem to like (it was long though) and then in winter time, it turned to just 90% mud. We are really unhappy as it was expensive and we did such a good job we thought initially. We are considering getting some lawn experts to come in and sort it out, but we are equally nervous it’ll happen all over again come the autumn. I’ve attached a picture of the area.

Last year we did a pretty much total renovation of the garden. New decking, shed fencing and grass area. We live in a city centre so it’s small but we wanted it varied. It turned out great. However, one major point has been the utter failure of the grass. We bought quality strips of it early summer, laid it with the soils recommended by the garden centre, stayed off it for 3 weeks (we were told 2) and kept it very well watered. It was fine until we (only gradually) started to walk on it and put one of our small four legged garden chairs on it. We weren’t careless, playing sport or anything etc at all on it, but it just started to fade, we were noticing patches starting to form (even in areas we just didn’t walk on). It didn’t get any worse and we thought we would just get rid of the patches in the spring. However, come late summer we did a final mow which it didn’t seem to like (it was long though) and then in winter time, it turned to just 90% mud. We are really unhappy as it was expensive and we did such a good job we thought initially. We are considering getting some lawn experts to come in and sort it out, but we are equally nervous it’ll happen all over again come the autumn. I’ve attached a picture of the area.
Would you redo the lawn or just start all over with something else?
As a note, we had small stones before but it was so uncomfortable and we want something to be able to put chairs on, sit on with cushions etc. We did get a quote for paving it with some nice stone slabs but that was thousands, which is just not possible so a DIY job is preferred.
Thanks!

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If the soil wasn't properly prepped either, that will have affected the establishment and subsequent growth.
It loos like a very soggy, shady site -everything grass hates, as the others have said .
I live in west central Scotland - not where that photo is...
My personal choice for that area would be 10mm pea shingle on top of compacted hard core and hoggin.
We have a large patio of 10mm shingle immediately on the north facing back wall of our house and it works very well. We removed all the paving which was there because the area is in permanent shade from Oct to Feb and the paving became lethally slippery every winter, even with pressure washing etc. The shingle is safe to walk on year round. I mention this because the bricks in your path look as though they could be rather slippery. Decking can also suffer with the same problem so I wouldn't use anymore of that in this area.
Chairs and tables sit well on small pea shingle. I don't often venture onto it barefoot and I wouldn't choose to sit directly on it on cushions but, for regular garden furniture, it's fine.
My rear garden was originally just paving and red gravel [ugly] and it's sticky heavy clay below. In spring 2021, I decided, on a whim, to take up the lawn I laid in 2014 - not because of shade though, but for other reasons. I also wanted a bigger pond. Layer of membrane and a ton of gravel [ to match the existing paths I had ] did the job. The biggest problem is re purposing the turf. Most of mine is currently filling a large compost bin
It's easy enough to gravel an area yourself. Ideal for chairs/tables/benches etc, and non slip. You can also plant into it if you want, without too much bother.
This was taken in October
The same area [roughly] in 2016
I live in west central Scotland - not where that photo is...