We live in a small house too and last year I did a major declutter. We had stuff in boxes that had never been unpacked after moving - so we obviously didn't need it! I loosely followed a book called "The life changing magic of tidying".

Also, if you find your bub gets everything (toys) out, try rotating the toys so most are away in boxes and there aren't so many things out at once. Helps bub not get overwhelmed too and keeps toys exciting.