The UK is has its first hung parliament since 1974, with the Conservatives as the largest party, but without a clear majority, leaving it unclear who will eventually run the country.
With 12 seats still to be counted at the time of writing, the Conservatives had 301 seats to the Labour party's 255 making it mathematically impossible for Cameron to gain an overall majority.
Conservative leader David Cameron said it was clear the Labour party "had lost its mandate to govern".
He said the Tories had fought a "positive and energetic" campaign. It was clear from the results that "the country wants change" and "that change is going to require new leadership."
However, Labour politicians stressed the UK's constitution gave Gordon Brown the right to try to form a government first.
Deputy Labour leader, Harriet Harman, indicated that Brown would not "throw in the towel" without making an effort to form a non-Conservative government.
Several high-profile incumbents lost their seats overnight, including former home secretary Jacqui Smith, another former home secretary Charles Clarke, Liberal Democrat Lembit Opik, who had been in Parliament for 13 years and a clutch of junior ministers,
The Green Party gained its first ever Member of Parliament, when party leader Caroline Lucas was elected in Brighton Pavilion., with a 1252 majority over her nearest rival, Labour's Nancy Platts.
The prospect of the first inconclusive election since 1974 and uncertainty about who would form the next government is likely to trouble already fragile financial markets.
The pound has fallen against both the euro and the dollar after it became clear that a majority government was unlikely to emerge from the election.
Election night was also marred by chaos at polling stations across the country as hundreds of voters were turned away and police called to deal with queues as the voting deadline passed.
There were problems in parts of London, Manchester, Sheffield, Birmingham, Liverpool, Newcastle and Surrey. The Electoral Commission has promised a thorough review.
Turnout is running at 65.2 per cent, a modest increase on the 2005 general election.
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