Perch outside old coastal town (5)

I believe the answer is:

poole

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'coastal town' is the definition.
The definition suggests a singular noun which matches the answer.

'perch outside old' is the wordplay.
'perch' becomes 'pole' (synonyms).
'outside' indicates putting letters inside (some letters go outside others).
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'pole' placed around 'o' is 'POOLE'.

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(Other definitions for poole that I've seen before include "Town near Bournemouth" , "Port in Dorset" , "Place in Dorset" , "Resort near Bournemouth" , "Dorset resort, harbour" .)

I've seen this clue in The Times.

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