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Unfortunately the house was built like this, it was never two rooms that have been knocked through. There was a gap in a traditional terrace and so about 15 years ago they built two 'modern' terraced houses to fit into the gap.
I know what you are saying about the heat just rising up the stairs, I might just have to spend all winter upstairs in bed!!!
no.knowledge - I can't fit another radiator. Firstly it would be an expense I can't afford at the moment and secondly, the only place it could possibly go is behind the settee which would make the back of it nice and warm but still not allow heat out into the room.
The draught excluder foam type stuff is a good idea, I think a trip to B&Q will be on the cards tomorrow and I will look into cavity wall insulation - I have no idea whether I currently have it or not.
Cheers x