Place to live, above store in Cornish town (7)
I believe the answer is:
padstow
'cornish town' is the definition.
(town in Cornwall)
'place to live above store' is the wordplay.
'place to live' becomes 'pad' (pad can mean someone's home).
'above' means one lot of letters go next to another.
'store' becomes 'stow' (synonyms).
'pad'+'stow'='PADSTOW'
'in' acts as a link.
(Other definitions for padstow that I've seen before include "Town in Cornwall" , "Cornish seaside resort" , "North Cornish resort with an annual 'Obby 'Oss festival" , "Cornish town" , "Home for Rick Stein" .)