Town house and stone mills (8-2-3)

I believe the answer is:

southend-on-sea

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'town' is the definition.
(I have seen 'coastal town' mean 'southend on sea' so perhaps 'town' could also mean 'southend on sea')

'house and stone mills' is the wordplay.
'house and stone' anagrams to 'SOUTHEND-ON-SEA'.
However, I am unsure how this is indicated.

Can you help me to learn more?

(Other definitions for southend-on-sea that I've seen before include "Essex resort with the longest pleasure pier in the world" , "coastal resort" , "Essex town" .)

I've seen this clue in The Sunday Times.

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