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I would largely say option 1. Make a couple of rooms (usually bedroom / living room) habitable so you have some respite from renovation chaos but i'd get cracking with making it yours whilst you have a blank canvas.
Definitely this if you're thinking about chasing new sockets etc. Otherwise all your shit will be covered in an inch of dust.
Soul
Now I'm in the camp of do I unpack everything or start the renovations already? Joy number one of living in an old property, lack of sockets. By lack I mean 1 double in each room, 2 if I'm lucky.