They're Celtic, I think. But Tolkien was for a while Professor at the University of Leeds; Leeds gets its name from a huge forest which surrounded the last Celtic kingdom in England, Elmet (Elfed in Welsh). So the elves are to my mind Welsh but Lothlorien is the West Riding ...

... and if you want to yokelise the hobbits, they should have Warwickshire accents, and sound like the Archers (one thing of course about the Jackson LotR movies is that the main hobbits have all grown up in the same place but have completely different regional accents)