My set-up, practical for lots of people where I live (8)
I believe the answer is:
houseful
'lots of people where i live' is the definition.
(a full house of people)
'my set-up practical' is the wordplay.
'my' becomes 'oh' (both are expressions of surprise).
'set up' says the letters should be written backwards.
'practical' becomes 'useful' (similar in meaning).
'oh' backwards is 'ho'.
'ho'+'useful'='HOUSEFUL'
'for' is the link.
(Another definition for houseful that I've seen is " large family".)
I've seen this clue in The Independent.
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