In the biggest scalp of the night, shadow chancellor Ed Balls - who Mr Cameron described as 'the most annoying person in modern politics' - lost his seat to the Tories by just 422 votes.
The Conservative leader, who is expected to see the Queen at 12.30pm, declared his intention to 'govern on the basis of governing for everyone in our United Kingdom' - a recognition of extraordinary gains by the SNP in Scotland which will pitch nationalists leader Nicola Sturgeon against Mr Cameron.
A deflated Ed Miliband threw in the towel after a series of crushing election los
After weeks of opinion polls suggesting the result was too close to call, 'shy Tories' came out in force at the last moment to keep Mr Cameron in Downing Street.
A 7am results forecast suggests the Tories will win 329 seats - more than half of the Commons. With Sinn Fein not taking their seats and the Speaker not voting, it would effectively give the Tories a majority of around seven.
The SNP tide has swept aside Labour and Lib Dem big beasts including Jim Murphy and Douglas Alexander in a tide of nationalism which has already sparked calls for a second independence referendum.
There are doubts that Mr Miliband will survive as leader until Friday lunchtime, as he faces being left with fewer seats than Gordon Brown, slumping to 233.
The Lib Dems are fighting for their survival as a political party, with ministers includingVince Cable, Danny Alexander, David Laws, Ed Davey, Simon Hughes, Lynne Featherstone and Jo Swinson all voted out. They could be left with just eight seats.
Nick Clegg clung on to his seat in Sheffield Hallam but revealed he will make an announcement about his leadership later this morning after a 'cruel and punishing night' for the Lib Dems.
Ukip has secured as many votes as the SNP and Lib Dems combined, but could be left with just
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