UK Legal Services Market Report 2024: Healthy Growth in 2023, But Law Firm Numbers Down by 1,000 Since 2018, Increased Appetite for Generative AI Amongst Lawyers
Dublin, May 24, 2024 (GLOBE NEWSWIRE) -- The "UK Legal Services Market Report 2024" report has been added to ResearchAndMarkets.com's offering.
This annual report provides a unique detailed market review and analysis of the UK legal services market, including corporate law, conveyancing, family law, employment, personal injury and wills and probate. The report considers legislative background, recent market developments and drivers, market structure, market size and trends with historical volume and value data, market segmentation by key practice area with volume and value data, the key players and future market developments.
Key Highlights
In 2023 the UK legal services market registered value growth of 8.3% at current prices reaching £47.5bn.
The law firm population is declining year-on-year and, measured by firms regulated by the SRA in England and Wales, numbers had decreased to 9,341 in December 2023: between December 2018 and December 2023 law firm numbers in England and Wales have declined by over 1,000 law firms. Over the same period, the number of solicitors with practising certificates has increased by 13%.
Consolidation in many consumer law sectors has been a feature of the last few years and this has been the main factor behind the decrease in the law firm population. It has been high street law firms and SME law firms that have seen while the largest decrease in numbers.
Revenue growth of 6.7% was achieved by the top 100 UK law firms in the latest financial year 2022/23 but this was below the 10.1% recorded in the previous year. Total revenues of the top 100 were £33.7bn increasing from £31.6bn in 2021/22. However, increasing profits has been difficult in the latest financial year: the total net profit of the 100 largest firms was £10.267bn, little changed from the previous year's £10.261bn. It has been the mid-market corporate law firms that have performed the best in 2023.
A notable theme over the last year has been the growing role of private equity investment in the sector led by the purchase of global law firm DWF by Inflexion Private Equity Partners. The last 12 months also saw the first private equity move for a business run by barristers, private equity backed law firms such as Fletchers and Stowe Family Law continued to take on more businesses while private equity firms Lawfront Holdings and MAPD expanded their presence in the sector. Of all the mergers and acquisitions since the last report over 20% involve either new investments by private equity businesses or private-equity backed law firms.
Legal advice for business and commercial matters (including commercial property) is the largest specific market segment taking almost a 50% share of the total UK legal services market value. In the consumer law market, the best performing sectors have been family law and employment law followed by wills and probate. Personal injury and conveyancing have faced a tough 12 months.
Key Topics Covered:
EXECUTIVE SUMMARY
MARKET STRUCTURE
Clear majority of legal advisers are regulated
Proposed regulatory changes in Scotland
Unregulated sector
Law firm numbers decline by over 1,000 in last five years
Chamber numbers decrease in 2023
Licensed conveyancers
Patent and trademark attorneys
Cost lawyers
Other providers of legal services
Personnel numbers
Solicitors
Barristers
Other legal professionals
Total legal services employment
MARKET DEVELOPMENTS
Cause for concern over sustainability of civil legal aid
NAO report identifies more concerns about the legal aid system
Fixed recoverable costs apply from 1st October 2023
Potential new regulators for CILEX lawyers, paralegals and others
Family court reporting pilot to be extended
CMA investigation launched on wills, pre-paid probate plans, online divorce
HMCTS's court reforms behind schedule and delivering less
Solicitors Indemnity Fund taking over by SRA
Consultation on re-introduction of employment tribunal fees
Increased appetite for generative AI amongst lawyers in UK
THE KEY PLAYERS
The Top 100 firms generate growth but at a lower rate than the previous year
Acquisitions and mergers
Axiom Ince
M&As in the last 12 months
Top 50 UK Law Firms
Selected other legal services providers
Listed law firms and others with legal interests
Gateley PLC
Keystone Law Group PLC
Knights PLC
NAHL Group PLC
RBG Holdings PLC
Other listed companies with legal interests
Anexo PLC
Frenkel Topping Group PLC
Marlowe PLC
Redde Northgate PLC
Consumer Law Firms
Coop Legal Services
Fletchers Solicitors Ltd
Irwin Mitchell LLP
Minster Law Ltd
Simpson Millar
Slater & Gordon UK Ltd
MARKET SIZE AND TRENDS
Healthy market value growth in 2023
UK exports of legal services pass £7bn for the first time
MARKET SEGMENTATION
Corporate, financial and commercial law
Overview
M&A activity
Company formations and insolvencies
Commercial Courts
International litigation and dispute resolution
Personal injury
Overview
The number of cases continues to decline in 2023
Official Injury Claim - two years since launch and still little use by individuals
Commercial and residential property, including conveyancing
Overview
Residential property market remains weak in 2023
Wills, trusts and probate
Overview
Probate applications declining as deaths also fall
Family law
Overview
Decrees absolute granted increase in 2023
Employment law
Overview
Employment tribunal cases decrease in latest year
THE FUTURE
Steady growth expected in 2024
Forecasts
For more information about this report visit https://www.researchandmarkets.com/r/gs5jk0
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