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Foamboard/foamcore will become your best friend if you start making more complex buildings (i.e. ones with open interiors and/or thin projections), but for hills and such, I'd recommend polystyrene insulation sheets. They're those pink or blue sheets of stiff, dense foam ubiquitous in terrain threads. They can be cut, carved, and textured with common household tools. They're widely available in the US, but I've heard of people in the UK having to look around a bit to find the stuff.
[edit:] Looked at the site again, and what he calls "styrofoam" appears to be the extruded polystyrene insulation I was talking about. Can't say you won't pay a premium buying it like that, but it's the right stuff.
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