"If the landlord was private he would no such right to stay. I understand people feel they don't want to leave the home they have had all their lives, but it's denying others a place to live. "
So you think old people (or indeed anyone) should be evicted from their family home? A private landlord might try to evict him for profit, but that doesn't make it right. By all means a council can ask tenants if they would consider moving but in my opinion a tenant must have the right to stay put if they are law-abiding people who pay their rent, and especially if they have lived their a long time.
And, of course, the neighbours don't want him to move out (not that that is anything to do with it) as they are all in council houses they bought, thank you very much, and are worried a large dysfunctional family will move in :-).
I;m sorry, but social need has to be balanced against tenants' rights. We idolise home owning in this county for some reason.