It was the nearest that the country has ever come to an equal three-way split of seats.
The Conservatives, who had been in power before the election, tried to form a minority government.
However, the Liberals and (unsurprisingly) Labour refused to support them on the King’s Speech.
Liberal leader, Asquith could potentially have formed a minority Liberal government, or a coalition with one of the other parties. Instead, he let Labour form their first administration with the words:
"There could be no safer conditions under which to make the experiment".
Asquith was right in the sense that the first Labour government was not dangerous - indeed it was safe, respectable, unadventurous and fairly unobjectionable, even to its opponents.
However, the experiment turned out to be worse than dangerous for the Liberals. Once Labour had become a party of government, the Liberals appeared to have lost their purpose and were punished at the next election, held less than a year later in October 1924. Labour lost office in 1924, but the Liberals lost almost three-quarters of their seats, crashing to only 40 MPs.
One conclusion could be that, given the chance, it is always better to be a party of government.