European markets declined for a second day as Brexit worries spread. In the U.K. there was a divergence. The more internationally focused FTSE 100 had a mixed day, gaining throughout the afternoon to close at 6,545.97, 0.35% up, while the domestically focused FTSE 250 lost 2.37%, closing at 15,734.68.

The pound also slid to new 31-year lows, getting close to the $1.3000 mark.

The Bank of England today said that the risks to financial stability caused by the Brexit vote in the referendum have begun to "crystallize."

In order to ease conditions, the Bank of England announced that it would reduce bank's so-called counter-cyclical capital buffer rate to zero from 0.5% until at least June 2017 to ensure they will keep lending through the immediate Brexit aftermath.

Governor Mark Carney said the bank was closely monitoring the risks of decreased appetite for U.K. assets including equities and fixed income; adjustments in commercial real estate, which could lead to tighter credit conditions for businesses; an increase in the number of vulnerable households; and reduced and fragile liquidity in core financial markets.

Indeed, pressure on the U.K.'s property market has forced three large U.K. real estate funds to halt redemptions. The latest was M&G Investments, which said, "Redemptions have now reached a point where we believe it can best protect the interest of the fund's shareholders by seeking a temporary suspension in trading."

Shares in the asset manager's owner, U.K. insurer Prudential, closed 4.3% down.

Standard Life Investments and Aviva Investors also stopped investors from making redemptions in from property funds. Standard Life (SLFPY) closed 5.2% down and Aviva (AV) was down 1.51%.

Property developers Barratt Developments (BTDPY) , Taylor Wimpey (TWODY) , Berkeley Group and Persimmon (PSMMY) were down well over 6%.

In Frankfurt, the Dax closed at 9,532.61, losing 1.82% and the Cac closed shed 1.69%, closing at 4,163.42 in Paris.

Carmaker Daimler (DDAIY) lost 3.6% today, Volkswagen (VLKAY) was down 2.9% and BMW (BAMXY) was down 2.37% after it was reported they were among six companies that were raided by Germany's antitrust regulator in June for a probe into the steel purchasing by the auto industry.