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A tenant without a written contract is still entitled to all the statutory rights a regular tenant with a contract is, including water, heating, a safe environment etc. In a similar vein, the tenant is still obligated to pay rent on time and take reasonable care of the property.
You can't prevent a tenant from having a tenancy just by not giving them a written tenancy agreement. As soon as they go in and start paying rent, a tenancy will be created under s54(2) of the Law of Property Act 1925 (which sets out the circumstances under which a tenancy agreement is not needed for short lets).
An absence of a written rent agreement means the landlord can impose the increase of rent in adherence to the Rent Control Act 1948. A tenant can also shift to a new place anytime as there is no rent agreement that states what should be the process if the occupant wants to evacuate the property.
If there is no tenancy agreement, a tenant cannot be given a section 21 notice for eviction. Instead, a landlord must use a section 8 notice (with a ground for eviction). To be able to evict a tenant in the absence of a written tenancy agreement, a landlord will need to apply to the courts for a possession order.