Despite the monthly drop rents continue to rise on an annual basis increasing by 3.5%, a £24 rise in the past year.
The biggest falls were in the Midlands with a 2.2% drop in the East Midlands and a 1.8% drop in the West Midlands.
Rents rose in three regions, increasing by 0.7% in the North East and 0.5% in both Wales and the South West.
Rents dipped by 0.4% in London - only the second monthly fall in the past 14 months.
In the past 12 months the largest increases in rents have been in London where rents rose by 5.6%, and the East of England where rents increased by 5%.
On an annual basis rents have only fallen in one location dropping by just 0.2% in the East Midlands.
David Brown, commercial director of LSL Property Services, said: “The looming spectre of the end of the stamp duty holiday has taken its toll on tenant competition in the run-up to the deadline, easing the upwards pressure on rents.
“In February, an increased number of tenants either became owner occupiers, or seriously considered property purchase, rather than renewing their contract or seeking a different rental property.
“With fewer tenants than usual actively competing for properties, combined with a slight improvement in the number of rental properties becoming available, many landlords priced less aggressively to avoid the prospect of a void period.”
Brown said in the longer-term it was hard to see a prolonged decrease in the tenant demand underpinning rental inflation.
And he added: “There are already indications that mortgage lending is falling back and that mortgage rates are beginning to climb, which will limit the number of prospective homebuyers leaving the rental sector.
“While the NewBuy scheme may support a limited number of first-time buyers, its impact will undoubtedly be off-set by the removal of the stamp duty holiday.
“As a result, and given the growing number of households, the pressure will remain on the private rented sector.”
