It should be accepted, however gramatically it's not correct, but I think 6 or 7 out of 10 Hungarian people would say "lakok".
I don't know if you've ever heard of 'ik verbs', maybe Wikipedia can help you, because I can't explain it properly: https://en.wikipedia.org/wiki/Hungarian_verbs#-ik_verbs
Because -ik verbs have a slightly different conjugation in 1st and 3rd person singular. I believe that up until now, we've only learned the indefinite conjugation. Basically, -ik verbs take the same ending as definite conjugation in 1t person singular, and they end in -ik in 3rd person singular.
él could mean live in a specific location as well as live in general, while lakik can only be the former (live in a specific location).