Tim Farron has held the Westmorland and Lonsdale seat for the Liberal Democrats by just 777 votes.
It was a hugely reduced majority from his 8,949 majority in 2015.
Elsewhere:
- Conservative Rory Stewart has retained his Penrith and the Border seat.
- Labour's John Woodcock emerged victorious by 209 votes after a recount to defeat Tory Simon Fell.
- Conservative David Morris retained his Morecambe and Lunesdale seat.
Mr Farron, the leader of the Liberal Democrats nationally, polled 23,686 votes.
James Airey, Conservative, polled 22,909. Eli Aldrige for Labour polled 4,783 and the other candidate Mr Fish Finger got 309 votes.
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His majority off 777 is down by more than 8,000 from 2015, with the Conservatives making clear gains in Westmorland and Lonsdale.
It had been expected that a declaration would come in at around 1.30am, but the acting returning officer agreed to a bundle check, given the small margin between the Lib Dem leader and James Airey.
After a long wait, candidates were called to hear a result, which was accepted by all parties.
After being declared the winner, Mr Farron thanked his family, his campaign team, the counters, and the police.
"Britain, I think, is a rather divided country and it massively saddens me," he said in his victory speech.
"We have a situation now where hopefully politicians will learn that calling referendums and elections that may suit your party rather than suiting the country is something to be avoided.
"This is a moment when we as a country genuinely need to come together to find collective solutions that work for all of us."
Speaking after his narrow defeat, Mr Airey said he had 'the bug' for standing as a parliamentary candidate and would 'definitely' be back in 2022.
Labour's Eli Aldridge said: "Thank you to everyone in Westmorland and Lonsdale who put their trust in Labour and I hope we did you proud tonight.We ran a very positive and passionate campaign."
John Woodcock retained his position as Labour MP for Barrow and Furness, gaining 22,592 votes.
However, the seat was hotly contested and Conservative Simon Fell polled 22,383 votes - a margin so close it demanded a recount.
Meanwhile Liberal Democrat Lorraine Birchall received 1,278 votes, UKIP's Alan Piper polled 962 votes and the Green candidate Rob O'Hara received 375 votes.
Mr Woodcock was visibly emotional when the result was officially announced, telling Barrow Town Hall that it had been a 'tough campaign' but that he would 'always fight' for the people in the constituency.
At Penrith and Border, Conservative Rory Stewart retained his seat with 28,078 votes and a 15,910 majority.
In 2015 his majority was 19,894. Labour candidate Lola McEvoy was second with 12,168 votes.
"I feel relieved and very privileged to be able to represent this constituency again," said Mr Stewart.
"I think it's really special and unique place, and I feel very happy to be able to try to articulate what makes it special."
Mr Stewart, who first won the seat in 2010, polled 26,202 votes in 2015, which amounted to a 59.7 per cent share of the vote at the time.
At this election Liberal Democrat candidate Neil Hughes got 3,641 votes, while UKIP candidate Kerryanne Wilde polled 1,142 votes, Douglas Lawson for the Green Party polled 1,029 votes, while Independent candidate Jonathan Davies got 412 votes.
Morecambe and Lunesdale was held by the Conservatives, but David Morris' majority fell from 4,590 to 1,399. The Conservatives secured 21,773 votes this time round.
It was a hotly contested seat, and in second place was Vikki Singleton, of Labour, who managed 20,374 votes.
Liberal Democrat Matthew Severn was third with 1,699 votes. UKIP candidate Robert Gillespie received 1,333 votes and Greens' Cait Sinclair won 478 votes.
Mr Morris said: "I think what has happened tonight should make every political party take note. A lot of lessons should be learned.
"I will carry on looking after the people of Morecambe. I will carry on being the best MP for them."
With 649 of the 650 seats declared, the current situation is:
Conservative: 318 (112)
Labour: 261 (+29)
Liberal Democrat 12 (+4)
DUP: 10 (+2)
SNP: 35 (-21)
Others: 13 (2)
To gain an overall majority a party would have needed 326 seats.
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