Wordpress - Wordpress Permalinks not working in Apache2 Ubuntu 14.04

In terminal type:

sudo gedit /etc/apache2/apache2.conf

Find:

<Directory /var/www/>

And make sure the AllowOverride directive is set to All.

In order to follow .htaccess redirects, it should be mentioned that Apache's <mod_rewrite> module needs to be enabled.

You can do this from command line on the server using the following commands:

sudo a2enmod rewrite
sudo service apache2 restart