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By keeping the balustrade at first floor to 1100mm high (min height for Building Regs) the landing will still feel open and bright. Taking the slats all the way to the ceiling might make the landing feel enclosed. The handrail should go on the outside of the stair i.e. the outside wall and bathroom wall.
This wonderful combination of white painted spindles with an oak bannister is perfect for a modern staircase. We are in love!