There were lots of UK TV kids folk-horrorish fantasy series in the 70s - some have reached cult status, and many are creepy stuff with several having great soundtracks too.
One good source of DVDs (though not sure if they are region free) is NETWORK:
http://networkonair.com/shop/96-drama
(They do have some soundtracks including a couple on vinyl in their sale)
Ones I'd recommend are:
The Owl Service (key work in Ghostbox world)
"This tale of the supernatural, sexual jealousy and class division broke new ground, with both bold direction from Peter Plummer and bravura performances from a cast of largely unknown actors. Originally shown in black and white this was, in fact, the first fully scripted programme made in colour by Granada Television.
Alison and her step-brother Roger go for the summer family holiday to a remote cottage in the Welsh Valleys. After hearing a scratching noise coming from the attic, Alison discovers some old dinner plates which have a strange floral pattern on them and, when she traces the pattern on paper, discovers that the flowers turn into owls. But what is the connection between the plates, the gardener, the angry housekeeper and the mysterious local legend?
Gradually the weird power of the valley takes over and the legend begins to unfold..."
Ace Of Wands
"a new kind of hero to children’s television: Tarot, a cool magician with psychic powers and a knack for unearthing strange goings on."
Children Of The Stones
"Children of the Stones was an undisputed landmark in children's television. Jeremy Burnham and Trevor Ray's groundbreaking fantasy series, starring Iain Cuthbertson and Gareth Thomas and filmed largely in Avebury in Wiltshire, combined scientific fact and fiction with pagan mythology and rural folklore in its portrayal of a village held captive by the sinister power of its Neolithic stone circle.
Intelligent, atmospheric and genuinely unnerving, the series – often cited by those who grew up in the Seventies as the most frightening thing seen on television – was the result of collaboration between writers Burnham and Ray, producer Patrick Dromgoole (whose previous credits had included classic HTV series Sky and Arthur of the Britons) and producer/director Peter Graham Scott; classical composer and conductor Sidney Sager scored the series' chilling theme and incidental music. Unsurprisingly, Children of the Stones has gained a devoted cult following in the decades since its first transmission in 1977."
King Of The Castle (more urban fantasy than folk horror))
"Macabre, fantastical and a benchmark production for children’s television in the 1970s, King of the Castle was created by Doctor Who stalwarts Bob Baker and Dave Martin as one of the run of outstanding children’s dramas HTV produced in that decade. Featuring strong direction and a script which expertly melds fantasy and reality, the series boasts solid performances from genre stalwarts Fulton Mackay, Milton Johns and Talfryn Thomas as well as Philip Da Costa as the series’ hero, Roland.
Recently moved to a crumbling tower block of flats, Roland’s cleverness marks him out for rough treatment from the gang who haunt the stairwells. Fleeing from Ripper, the gangleader, he plummets to earth in a lift that should be broken... waking up he finds himself in the grotesque and eerie fantasy world of ‘The Castle’ – a twisted version of the tower block, filled with gruesome versions of the people he knows. Can Roland find the missing keys he needs to become ‘King of the Castle’?"
Raven
"Raven, a 15-year-old Borstal boy, is released on probation to live with Professor Young, an archaeologist immersed in research into Arthurian legend, and his wife, an amateur ornithologist. The professor is working in deep underground caves whose carved symbols suggest that King Arthur may have used them as a hiding place, and Raven is intrigued by his belief that Arthur was not one man, but a succession of chiefs.
But the professor’s research in is peril: the government plans to build a nuclear waste reprocessing plant on the ancient site. As Raven is drawn into the battle to save the cave system, he begins to understand its mysteries - and the brightly coloured bird that has accompanied him on his journey holds the key to the discovery of his own unique destiny. Future Quadrophenia star Phil Daniels is Raven, alongside Michael Aldridge (Last of the Summer Wine) and Carry On... stalwart Patsy Rowlands, in this six-part fantasy series in which occult and supernatural themes are interwoven with environmental concerns."