The seat had become vacant when the sitting Conservative Member of Parliament (MP), William Pease had died on 23 January 1926, aged 60.
The Liberal Party candidate was 51-year-old John Dickie, who had been the MP for Gateshead from 1923 until his defeat at the 1924 general election.
The Labour Party candidate was 42-year-old Arthur Shepherd, and E. H. Pease stood for the Conservatives.
On a slightly increased turnout, the result was a narrow victory for Shepherd.
Pease did not stand for Parliament again, but Dickie was elected in 1931 as National Liberal MP for Consett.