Farage, who had stood in the South Thanet constituency, had previously promised to resign “in 10 minutes” if he failed to get elected and in his resignation speech said he was a “man of my word.”
“There’s a bit of me that’s disappointed but there’s a bit of me that’s happier than I’ve felt in many, many years,” he said.
The seat was won by the Conservative Party’s Craig MacKinlay, who beat Farage into second place.
Farage said he would take the summer off for holidays and hinted that he might stand for re-election in UKIP’s September leadership contest.
He backed UKIP deputy chairperson Suzanne Evans to take over the party in the meantime.
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