Well muddleC, so you are from Coventry, eh? I believe that it has plenty of folky activity but perhaps with too much of an Irish bias for me! It obviously depends what sort of stuff you are interested in.
I'd be more impressed with the various suggestions if (mostly?) people didn't vote for the area in which they currently live! So who has actually voted for somewhere else?
I live in Stratford-upon-Avon and the rural hinterland to the south is pretty good for informal English music sessions, particularly morris tunes, but its not so good for folk clubs or singarounds. Inevitably the formal folk clubs are in or close to large towns, eg Warwick, Banbury & Worcester.
For my own part, on my travels, the Whitby area and Devon have been very welcoming and friendly.
"For I be free to go abroad or take again my homeward road!"