My gran has a 3 bed council house which she has lived in for 50 years. I'm aware that it's not her house, but she's lived there for such a long time that it's her "home". Council tenancies often last for a long time so people do treat their house as their home and improve it. She's spent a fortune because the council only does the bare minimum - she's paid for light fittings, blinds, wall tiles, electric shower, carpets and flooring, paved the front garden, replaced the stair bannister, installed built-in wardrobes, decorated throughout, laid a patio, tended a garden which is now mature and looks beautiful, erected a greenhouse, etc.
You're suggesting that my gran should altruistically leave her home and go through a big upheaval to start from scratch in a new area away from her friends and neighbours, leave all of her hard work and pay for all new carpets and blinds etc. Sorry but nobody is going to do that for the benefit of strangers!
It's also worth noting that the council puts the property back into its original condition when a tenant moves out, because they don't want a new tenant to sue them for anything left by a previous tenant that that may be dangerous or wasn't done properly. When my gran's neighbour died they ripped out all his brand new blinds, carpets, built in wardrobes and other improvements and chucked them in a skip. They even removed the electric shower because they hadn't installed it. What a waste!