A full wave model based on the volume electric field integral equation (VEFIE) is presented for indoor propagation modelling. The model is based on the two dimensional form of the VEFIE discretised with the method of moments. The linear system arising from the discretisation process is solved with an iterative solver that is accelerated by using the fast Fourier transform and a reduced operator. The VEFIE model is validated against a measurement campaign carried out in a typical house. It is also compared against ray tracing, the current most popular model for producing indoor propagation predictions. The ability of the VEFIE to completely characterise the radio channel in the frequency and time domains is investigated with particular focus on received power predictions and the computation of power delay profile and angle of arrival information.