UK legal services market hits high point
18 March, 2015
The UK’s legal services market has been valued at an estimated £29.3bn following the highest recorded annual growth for many years, according to a new report.
The study published by Research and Markets revealed that the UK’s legal market was numerically dominated by small firms, but that financial resources were heavily concentrated amongst the top 200 law firms in Britain, who accounted for around 55 per cent of private practice revenues generated in the UK.
It also revealed that business and commercial services constituted the largest segment in the UK market; accounting for an estimated 34 per cent of annual UK legal market revenue. This was followed by personal injury/accident/medical negligence work, and legal work associated with commercial property, which both contributed around 11 per cent to the UK’s legal sector revenue.
Consolidation as a result of greater competition was also evident in the figures, which showed the overall number of private practice law firms in England and Wales had started to decline. This was evident in the data which revealed that between the start of 2013 and the end of 2014, around 500 law firms had exited the market.
In 2015, revenue growth in the UK legal services market overall is likely to be around five to six per cent, while over the next two years, the researchers expect competition in the legal services market to intensify, according to the report.
This research reveals that while the sector’s revenue continues to grow, greater competition and other challenges are forcing firms to consolidate and specialise in order to improve revenue streams. At Watson Buckle our team of legal specialists can help you find innovative solutions that will help your firm maximise its profits, while remaining financially stable. For more information about our dedicated legal services, please contact us.