Live on a B road outside English town (8)
I believe the answer is:
aberdare
'town' is the definition.
(I've seen this before)
'live on a b road outside english' is the wordplay.
'live' becomes 'are' ('they live' means 'they are').
'on' is an insertion indicator (as in clothing 'on' a person).
'road outside english' becomes 'erda' (I can't justify this - if you can you should believe this answer much more).
'b'+'erda'='berda'
'are' enclosing 'berda' is 'ABERDARE'.
(Other definitions for aberdare that I've seen before include "town in South Wales ..." , "Welsh (former coal-mining) town" .)