That is not the definition of a transformer. Resistors can drop voltage but they are not transformers. Transformers are AC devices. They do not rectify.
LEDs require DC. Most LED lamps of the GU10 or GU5.3 type incorporate rectifiers so they can work on AC or DC, but AC at 50/60 Hz, not AC at tens of kilohertz.
As said several times your neighbour needs a proper LED power supply.
Winston, why do you keep coming out with this crap when not only does everybody contradict you, but you can be proved wrong by the simple task of replacing a 12V lamp with an LED one?
99% of MR16 (don't even start with more of your crap, Winston) lamps include their own "driver" that will accept 12V (more or less) DC or AC and run the lamp. That 12V can come from almost anywhere, a classical transformer giving 12V AC, an "electronic transformer" giving 12V AC, or a brick/wallwart SMPS giving 12V DC. A tiny number of specialist lamps are intended only to be driven by 12V DC, sometimes requiring an external constant current supply.
The electronic transformers are by far the most common on all except the very oldest MR16 lamp installations, and they often react badly when an LED lamp is fitted. They have minimum load requirements which are typically higher than a retrofit LED lamp, so they may flicker or not light at all. They can also interact poorly with the LED drivers themselves, causing cutouts during the AC cycle that will be perceived as flicker.
You may be able to wire multiple lamps through one electronic transformer to meet the minimum load, or replace the existing transformers with drivers intended to be compatible with the new LED lamps. Or just try a different brand and it might work OK.