So many of my favorite places in Europe have been covered, so I'll stick to recomending my favorite places in ol' Blighty;
the lake district, particulaly Kendel. great place to do walking, biking(you can rent bikes everywhere and ride from west to east[east/west] and have your stuff shipped ahead every day to your next hostle) and messing about on boats.
York; a city that has cornered the market on tea shops
Bakewell; Anyone who thinks the English have not mastered fine foods will be pleasently corrected here. Great fine pastry shops, very cool town. (visit nearby Melton Mobrey for out of site pork pies that made that town famous)
Stray Tours; they have a small office out of Earls Court London and do really great tours of britian. very relaxed, you meet great people while traveling low budget; but do it even if you can afford better. We stayed in a castle in Wales on one of their tours.
Hay on Wye; A town devoted to book shops. Too good to be true.