We also had this fireplace position in mind. However, since it is a water-guided fireplace, a wall is needed to let pipes etc. exit there so that they are not visible; if it is placed on the exterior wall, unfortunately, the possibility of a room partition is lost.
Moving the house further back from the street is difficult; on the one hand, green space would be lost, and on the other hand, more paving would be required, which does not allow for the maximum buildable area.