Joshua Watson, a cheesemonger living over his shop in Newcastle upon Tyne, bought Bensham Grove and three allotments on Gateshead's Town Fields in the early 1800s. His intention was to use the house as a country cottage for his family. The River Tyne was not as polluted as it became in later years, but it was already showing signs of being the hub of industry and commerce of the future. Thus, Joshua was attracted to the golden cornfields, bluebell woods, and windmills of Bensham. The location was near enough to continue his business on the quayside but rural and healthy for his children.

This marked the beginning of the life-long involvement that three successive generations of the same family had with the house called Bensham Grove. Joshua, Joseph, and Robert Spence Watson, all belonging to a well-respected Quaker family, lived with their families almost continually at Bensham Grove until 1919 when Elizabeth died and bequeathed the house. Each generation enlarged and improved the home, resulting in an eclectic mix of Regency and Victorian features.

Elizabeth Spence Watson was an influential figure in women's rights and education. She also helped the poor of Gateshead in many ways. At home in Bensham Grove, Robert and Elizabeth welcomed various visitors, including artists, craftsmen, educationalists, reformers, poets, and politicians. When the Spence Watsons passed away, Bensham Grove became an Educational Settlement, doing much work during the Depression in the thirties. It remains a center for Adult Education and a busy Community Center.
When the house was donated to the Bensham Community as a Center of Learning, it became known as the Bensham Settlement. Although there have been some inevitable changes, the essence of the house remains. It is easy to imagine the children playing in the garden or visualizing the formal dinners where distinguished guests of all walks of life sat down with the three 'fine specimens of good North Country Englishmen, Quakers...with strong solid intellect..' (Quote from Prime Minister Gladstone).

The house is a Grade 2-listed building, and it still boasts many features such as stained-glass windows, fireplaces, tiles, and decorated ceilings. Many of these were fashionable and bear a strong Arts and Crafts theme. William Morris and some Pre-Raphaelite painters welcomed visitors, and their influence can still be felt in the rooms. Bensham Grove still follows their principles in promoting and improving life in the Bensham Community.

Lastly, the Bensham Grove is also known for its ghost hunting activities.