It is unknown when the identifier "English" became connected to the instrument: at the time of its introduction to Great Britain, and during its period of popularity, it was apparently simply known as guitar or guittar.
The English guitar's popularity reflected the desire of the wealthy class to play a simple musical instrument.
Burney recounted (in ‘Guitarra’, Rees's Cyclopaedia, 1802–19) how its vogue about 1765 was so great among all ranks of people as nearly to ruin the harpsichord makers; but Jacob Kirkman retrieved the situation by giving cheap guitars to milliner girls and street ballad singers, thereby shaming the richer ladies into returning to the harpsichord.
[1] This instrument helped those that found it hard to acquire the right-hand technique, during the 1770s a certain Smith patented a key-box housing six keys similar to those of a piano, which when depressed caused leather-covered hammers to strike down onto the strings.
In 1783 Christian Claus of London patented a more sophisticated ‘keyed guitar’, whose mechanism was housed inside the sound box instead of being poised above the strings; the hammers struck upwards through holes in the soundhole rose.