Hi I am stuck with this problem above. Is there another way of testing windows phone apps in visual studio 12 without having to access hyper V? Thanks
If your hardware is not capable of running Hyper-V, you are dead in the water.
Otherwise if your Windows 8.1 license does not include the support of Hyper V, you can check out the following post from Nokia where they install a Windows 8 x64 with an evaluation license on a virtual machine - or you could use a dedicated hardware setup or dual-boot etc.
Source: Windows Phone 8 SDK on a Virtual Machine with Working Emulator
coreinfo.exe –v (in the folder where coreinfo.exe is located)* like EPT * Supports Intel extended page tables (SLAT). If not, you are unable to run it hardware-wise.Besides the trivial, straight-forward proces of creating a Virtual Machine, there are two additional steps that have to be done to run Hyper-V.
Before finishing the Virtual Machine configuration, click the 'Customize hardware' button.

Go to the Processors section and enable Virtualize Intel VT-x/EPT or AMD-V/RVI.

Finish the configuration and proceed to the next step.
Exit VMWare and open up the Virtual Machine configuration before installing Hyper-V. The config file is located in the folder where you created your Virtual Machine with the extension .VMX, e.g.: Windows 8 x64.vmx.
Edit the file and add the text marked in red (hypervisor.cpuid.v0 = "FALSE").

If you are using Visual Studio 2013 you might want to check out these posts as well when installing the Windows Phone SDK.
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