The Isle of Wight is pretty good for folk music.
The Quay Arts centre at Newport appears to be the hub for some of it with the Newport or IW club meeting there when I was visiting a couple of years ago and also artists like Renbourn and Jansch doing concerts. Nearby Portsmouth and Southampton are active too... and the ferry fares are not THAT expensive even for us from Oz with our lousy dollar.
There's also an acoustic group at E/Cowes and a few other bits and pieces going on... just do a google check and you'll find them.