Mr Farron, an evangelical Christian who was repeatedly questioned during the General Election campaign as to whether he believed gay sex was a sin, said his religion had made him a "subject of suspicion".
The Lib Dems gained three seats in last week's election, but had a hard campaign marred by repeated spats over Tim Farron's views on homosexuality.
"I've resigned as shadow home secretary over concerns about the leader's views on various issues that were highlighted during GE17."
At their Brighton conference last autumn, confidence was sky-high: their strategy to appeal to the 48 per cent who voted Remain looked to them like a surefire and quick route tor recovery.
Mr Farron also faced tough questions about his views on abortion after he previously claimed it was "wrong".
BREAKING: Tim Farron has resigned as Liberal Democrats leader
Tim Farron speaking in the House of Commons during its first sitting since the election.
He said he should have spoken more wisely with the questions around his faith during the election campaign as well as about his views on gay sex.
Farron said he is unable to continue because he is too torn between his Christian faith and his duties as a political leader.
Farron had said his party would not support either May's Conservatives or the opposition Labour Party in forming a government after last week's election left no outright victor. "But I wanted to revive the role as it gives the party another powerful voice and has helped give prominence to many of our notable MPs, including Ming Campbell, Simon Hughes and Vince Cable".
Farron, 47, led the most anti-Brexit of the national political parties yet performed disappointingly in a June 8 election that became dominated by the clash between the Conservatives and Labour, squeezing support for smaller parties like his.
"I have made my view clear and now I hope the debate can move forward to addressing the massive injustices many LGBT+ people face in our society and overseas".