Mine is in the house. Not that it matters were I am but I had a splash board at the back against the wall made of ply. Just some 1/4" I had around. It's gone somewhere but the wall is part tiled.
It has cushion flooring. Good quality so easy to sweep up and it lasts. I have had problems treading swarf out onto a carpet in another room but not very often. I just take more care now. Eagle eye spots it anyway as does the dog. I usually work in sandals. Easy to take off and I don't hold heavy things in such a way that they might drop on my feet. If I made large scale traction engines I would wear something else and wouldn't be working in the house.
I had a lot more problems with flying swarf when I had an ML7. Bed and spindle a bit worn so swarf broke off a lot and went all over the place. Some reckon work improved this but not completely. Nice curly swarf doesn't fly around.
One problem people might not think about is noise especially if the machines are upstairs. I have some up there too. While looking for a 2nd lathe I visited a widow selling one of the cheaper gear heads that don't use precision ground gears. To noisy for me to buy. I checked it over for her and told her all was good and showed her which bits went with it. Afterwards she told me she understood why I was concerned about the noise. She often went out when her husband was using it – up stairs. I have things like radial arm saws and bandsaws on the top floor and they don't cause any problems. I'd say smooth running machines and no gears at higher speeds should be ok but houses vary. I've been in some were people can be heard walking around upstairs. They tend to be timber frame builds.
Pass on timber frame but with a bit of sense floor loading shouldn't be a problem. Joist's run in one direction and heavy loads can be put up against a wall that also supports the end of the joists. On the other hand people can be extremely heavy and might even jump about in one place. The main thing really is that a 4 legged bench wont be the ideal load spreader – more of a cabinet type arrangement or a machine cabinet will make a much better job of it. Mounted like that a 200kg wouldn't bother me, getting it up there would.
Storage can be a problem. Easier to show part of my solution. Shelf fittings from screwfix and mdf from B&Q same company but B&Q will cut up the mdf and sc were much cheaper for the fittings in bulk.

Taken part way through yet another tidy up. There are a number of shelves above the ones shown so I need some light weigh steps to get at things. Again sense is needed. What's under the wall etc. This house has some walls in places that are offset from the ones below. They did some strange things in 1911. I wanted shelves in my top floor workshop but the walls aren't solid. We have used some racking instead but the weight of the items on them compared with a lathe etc are low. Actually I have added some racking to the one above. . Shallow as putting things in front of others just makes it hard to get at things. The floor board here rotted away long ago and were filled in with concrete. The rest of the ground floor is solid but this area wasn't for some reason.
Yes my lathe is supported at one end on a window sill above a belfast sink at one end with bulk of it's weight on a very old kitchen unit. The miller which is surprisingly heavy is supported on that and a steel filling cabinet, deep draw a4 type. An old one. I did think about putting a length of the thick kitchen work surface across the lot but didn't. It's good strong stuff. I have made hefty benches in a shed and a garage using it. Kitchen units are also surprisingly strong. The modern drawers in them wont be much good for heavy bits and pieces but shelves will probably be ok – on decent makes.
John
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Edited By Ajohnw on 09/02/2016 18:05:42