UK Legal Market Review 2017 and What to Expect in 2018

Traditionally, legal recruitment sees a strong first half of the year, driven by January activity. But 2017 broke the mould. Brexit, US elections, and global uncertainty slowed associate recruitment early on, leaving firms cautious. By mid-year, expectations were low, but the market rebounded strongly in the second half.

London

Brexit concerns initially stalled hiring, but deal flow exceeded expectations, driving demand in corporate, real estate, finance, employment, and regulatory law. Litigation remained steady. Flexible working surged, especially for PSL and knowledge roles, and virtual law firms gained traction. US firms continued to disrupt the UK market with aggressive talent strategies.

In-House

After a slow start, in-house recruitment accelerated mid-year, with strong demand for commercial contracts, financial services, regulatory, and compliance expertise. Flexible consultancy and long-term contracts are expected to grow in sectors like IT, insurance, and infrastructure.

Offshore

Despite hurricanes and the Paradise Papers controversy, offshore markets in Bermuda, BVI, Cayman, and Channel Islands remain robust, seeking lawyers with corporate, finance, funds, and private client experience.

Interim & Temporary Work

AI shortened document review projects, but demand for skilled lawyers remains high—especially those with foreign language skills. Regional locum markets grew as City firms near-shored work to hubs like Cardiff, Birmingham, and Manchester. Public sector contract work is thriving.

Regional Highlights

North: Leeds, Liverpool, and Manchester saw rising deal activity and salary growth in real estate, corporate, IT, and regulatory law.
South West & South East: Strong demand for private client, real estate, corporate, and commercial lawyers. Bristol emerged as an insurance litigation hotspot.
Midlands: High demand for commercial property, IT, and construction lawyers, with salaries slightly trailing other major hubs.

Insurance

Despite uncertainty over whiplash reforms, clinical negligence and personal injury remain busy areas, with national firms expanding aggressively.

The Big Challenges for 2018

GDPR: Coming into force May 2018, GDPR will create huge demand for data protection expertise, with fines up to €20M or 4% of global turnover.
Brexit: The ultimate “Shadow Monster”—its impact will touch every aspect of UK law, from trade and immigration to employment and competition.

Looking Ahead Expect major shifts in recruitment driven by regulatory changes, technology and economic uncertainty. For a confidential discussion about legal recruitment in 2018, contact us today.