Photo Sue dancing where the fiddler was? (8)

I believe the answer is:

housetop

I'm a little stuck... Click here to teach me more about this clue!

'where the fiddler was?' is the definition.
Although both the answer and definition are singular nouns, I don't see how they can define each other.

'photo sue dancing' is the wordplay.
'dancing' indicates anagramming the letters.
'photo'+'sue'='photosue'
'photosue' is an anagram of 'HOUSETOP'.

Can you help me to learn more?

(Other definitions for housetop that I've seen before include "[PROCLAIM] from up here?" , "Roof (from which to shout?)" .)

I've seen this clue in The Times.

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