Angharad Warren, Director, reviews the West Midlands legal market in 2024 and shares her predictions for 2025
From Angharad Warren
After a relatively quiet 2023, the Midlands legal market has shown encouraging signs of recovery in 2024.
Transactional areas such as real estate and corporate have seen a noticeable uptick in activity.
Recruitment freezes at some of the largest firms, particularly in real estate, have now lifted, with residential development picking up first, followed by a marked increase in commercial development work. Asset management and investment remain steady, albeit quieter than usual.
The property litigation market continues to be robust, with particular demand in housing litigation but very few opportunities for general commercial litigators, while employment lawyers are also seeing increased interest.
Construction lawyers continue to be in fierce demand but private practice faces significant in-house competition for these lawyers.
Pensions and planning lawyers remain in demand, though vacancies in these areas are less frequent.
Corporate recruitment is thriving at the mid-senior levels, although it was a particularly challenging year for NQs aiming to qualify into corporate and banking, with very few vacancies released nationally and intense competition for those that did appear. Similarly, vacancies for NQs in commercial, IP, and employment were rare (as they always tend to be).
One notable trend has been the continued rise in demand for public procurement lawyers, a need we expect to grow further with the introduction of the new Procurement Act.
Salaries
Salary levels have remained relatively stable, though some mid-tier firms have made notable increases in an effort to keep pace with larger national and international firms. The higher-end pay scales have seen more modest rises, reflecting the market’s overall stability.
London continues to be a pull for Midlands-based lawyers, driven by the higher salaries and ease of commute. However, the increasing push for a minimum of three days per week in the office has made it more difficult for some lawyers to balance living in the regions while working in the capital.
In-house opportunities
In-house legal teams continue to grow in size and influence, attracting more lawyers away from private practice.
As a result, the proportion of lawyers in private practice has decreased, while those working in-house has steadily risen year-on-year.
Increasing standards
Recruitment remains active, but hiring standards are tougher than ever. While there are still plenty of opportunities at the mid and senior levels, there is a particularly strong demand for legal director and partner hires to drive firm growth.
New entrants
New entrants into the Midlands legal market are also shaping the landscape.
Hill Dickinson has been a significant addition this year, bringing over its real estate, corporate and property litigation teams from Irwin Mitchell. TLT has continued to make high-profile hires, and several other firms in the city centre are planning significant growth or are in discussions about potential mergers.
Knights continues its regional expansion, recently acquiring Thursfields in the West Midlands, further strengthening its foothold in the region.
Prospects for 2025
Looking ahead to 2025, firms are likely to continue emphasising the importance of office presence. Currently, many firms are operating with a 50/50 hybrid working policy, with many moving towards three days in the office and two from home. Very few firms yet require full-time office presence.
The focus on diversity and inclusion, particularly social mobility, remains a key priority alongside the ongoing investment in technology and AI.
The latter has become increasingly prominent across the legal sector, with AI adoption only expected to grow as firms explore new ways of working.
The outlook for the Midlands legal recruitment market in 2025 is positive, with an expectation of continued growth.
Transactional areas are expected to get busier, especially in real estate and corporate. Firms are likely to continue investing in technology, diversity, and talent, ensuring the region remains an attractive hub for legal professionals.
