I re-read this thread with all the replies to my husband... we are deciding to tackle this head on. Here is our course of action:
1. We are going to get rid of as much of the outdoor furniture as we can. It is mostly big stuff but the cushions and maybe the outdoor chairs can go for now.
The wooden frame of the outdoor lounge will be covered in bitter stuff bought from the petshop.
2. We are going to tie bones and toys inside his kennel. Until now everytime we put things for him in the kennel, he just takes them out. This way he will have to stay in there if he wants to chew/play with it. Hopefully that will get him used to the kennel.
3. We already try not to make fuss when we leave and come back but leaving a radio inside the house so he can hear it outside might be a good idea, so will do that too.
See how we go I guess...
Thank you everyone from the bottom of my heart.