The announcement of Jeremy Corbyn's success brings to close a bitterly fought contest, which could herald the start of renewed divisions within the party between those in support of his anti-austerity platform, and those advocating a further shift away from the left.
Jeremy Corbyn won the vote in the first round, picking up 251,417 or 59.5 % of votes cast - 40% more than his nearest rival Mr Burnham, who got 19%.
A total of 422,664 people cast a vote - a turnout of 76%. Former minister and Gordon Brown ally Tom Watson was elected deputy leader.
Jeremy Corbyn, who began the contest as a rank outsider, saw off a challenge from frontbenchers Andy Burnham, Yvette Cooper and Liz Kendall.
In a speech delivered after the announcement of his victory,Jeremy Corbyn said his first act as leader of the party would be to attend a protest demanding better treatment of refugees.
"They are the generational victims of war, who end up in desperation, end up in terrible places, end up trying to get a place of safety...they are human beings just like you, just like me," Corbyn said.
"Let's deal with the refugee crisis with humanity, with support, with help, with compassion...we cannot go on like this with grotesque levels of global inequality."
Jeremy Corbyn said he would take the ruling Conservative party to task for its cuts to welfare payments and public services, which he blamed for rising poverty in the UK.
"The Tories (Conservatives) have used the economic crisis of 2008 to impose a terrible burden on the poorest people in this country...it's not right, it's not necessary and it's got to change," Corbyn said.
The MP for the London constituency of Islington North, also thanked a number of trade unions for their backing during his leadership campaign.
Jeremy Corbyn's predecessor as Labour leader Ed Miliband gave his "full support" to Jeremy Corbyn but said he expected him to "reach out to all parts of our party".
Jeremy Corbyn is a staunch anti-war campaigner, the only MP of the four who sought the leadership to have voted against military intervention in Iraq in 2004, an outspoken CND (campaign for nuclear disarmament) supporter and white poppy wearer
Jeremy Corbyn has been one of Labour's most rebellious MP's, having defied the official line to take on votes dictated by party enforcers - or 'whips' - over 500 times in just the last year alone.
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