I asked @chrisgardiner.bsky.social for some references to the various kinds of UK folklore we've been reading about for our upcoming game, Mandrake, and here's a long and juicy thread! There are so many worth telling you about!
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Sunken Lands: Atlantis might be the most famous sunken land, but we've taken inspiration from examples closer to home. Lost Lyonesse that lay beyond Land's End in Cornwall, and became associated with Arthurian legend.
The lost Brittany city of Ys (or Kaer-Ys), drowned by mortal folly, which features in the collection of Breton folk-songs known as the Barzaz-Breiz. Cantre'r Gwaelod, a land said to lie off the coast of Cardigan, in Gwynedd.
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They are of course primarily inspired by the Scottish legends of selkies. A favourite modern version of the archetypal selkie story can be found in Kevin Crossley-Holland's short collection Outsiders, which retells folktales from the point of view of those who don't fit in.
Their name and sorcerous inclinations were inspired by the korrigan, another bit of Breton folklore: deadly, capricious fey whose demands were dangerous to defy.