Direct: he said, “It used to be a lovely quiet street.”
Indirect: he said that it used to be a lovely quiet street.
Why is it not:
He pointed out that it had used to be a lovely quiet street.
You don't have to use "he said" every time you put a sentence into indirect speech. In fact, you can choose the appropriate verb from a long list.
Whether you choose one or another verb pretty much depends on context and intonation.
What about going to the beach? "He suggested..."
Yes, we must visit her. "He agreed..."
Context and intonation will help you choose the right verb.