Nigel Farage has claimed his party will win double the number of seats predicted as UKIP makes significant gains across the country.
Early on Friday morning UKIP had already surpassed the 80 seats it had been expected to take, dealing a significant blow to the main parties and leading to claims the country was now in an era of four-party politics.
UKIP took seats off both Labour and the Conservatives in their heartlands, which was particularly damaging to Ed Miliband, who has been accused by his own party of running an "unforgivably unprofessional" campaign.
A ballot box is emptied at Trinity School in Croydon Labour lost its grip in the north and, in a serious blow, the party lost control of Thurrock, a key marginal for the General Election in 2015, to no overall control, losing two seats to UKIP.
Mr Farage said UKIP would now be "serious players" in the General Election and said the party was expecting to win double the 80 seats that had been predicted.
He said: "The UKIP fox is in the Westminster henhouse" and added: "The idea the UKIP vote just hurts the Tories is going to be blown away by this election."
However, Mr Farage, who has consistently warned the local and European elections would deliver a UKIP "earthquake", admitted that the party was unlikely to be successful in London.
Ed Miliband defended the party's campaign and said people were turning to UKIP to express their discontent with the way the country is run.
He told Sky News: "I think we ran a good campaign."
Joey Essex may have supported Ed Miliband but Essex man voted UKIP He said: "I think in some parts of the country we have had discontent building up for decades about the way the country has been run and about the way our economy works and people feeling that the country just does not work for them and so what you are seeing in some parts of the country is people turning to UKIP as an expression of that discontent and that desire for change."
Mr Miliband added that Labour would be able to provide the answer to the discontent by the 2015 vote.
UKIP made its greatest gains in Essex, where Margaret Thatcher once identified the "Essex Man", a man who moved out of London, once voted Labour but switched to the Tories.
UKIP took seats from Labour in Hartlepool, won 10 seats in Rotherham and polled more than a third of the vote in wards in big cities, such as Sunderland, Birmingham and Hull, where it previously had little or no presence.
Mr Farage casts his vote in Cudham, Kent According to the latest Sky News projection, the results so far would give a hung parliament at the 2015 General Election.
Sky's election analyst Professor Michael Thrasher said UKIP's success suggested the party would claim at least one seat in the House of Commons next year
Conservative Education Secretary Michael Gove said the results had not been as bad as expected. He categorically ruled out any chance of a pact with UKIP.
The Camerons and the Milibands cast their votes Most councils will not declare their results until later on Friday.
As predicted, the Liberal Democrats suffered significant losses, particularly in Kingston-Upon-Thames where it lost control of the council after 12 years to its coaltion partners. In Portsmouth it lost control with UKIP gaining six seats.
However, the party managed to hold on in Eastleigh, where UKIP came second last year in a by-election.
Liberal Democrat leader Nick Clegg admitted the party had had a bad night but said: "Actually I think in the areas where we have MPs where we have good organisation on the ground ... we are actually doing well."
:: Follow all the results as they come in on Twitter with @skyelections.
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