UK in-house legal recruitment market update Q2
Corporate and commercial
We anticipated a cautious approach to legal hiring early in 2025; however, we are delighted to report a more positive start to the year. In the first quarter of 2025, we have observed nearly a 20% increase in vacancies, compared to the same period in 2024. This uplift is evident across both permanent and interim hiring, spanning all levels of legal roles from Paralegal to General Counsel.
Notably, there has been a significant shift at the senior end of the legal market, which has been particularly challenging over the past 18 months. This resurgence is a promising sign for the sector, indicating a renewed confidence and demand for experienced legal professionals.
Sectors that struggled last year – such as technology and FMCG – have seen an uptick, and both the energy and real estate sectors have seen a high demand for in-house lawyers in Q1. While we are optimistic about this positive trend, we remain mindful of potential challenges ahead, with the current macroeconomic and geopolitical instability. We are hopeful that these issues will not impede the continued growth and recovery we are witnessing here in the UK.
Contact Georgia Morgan-Wynne
Banking and financial services
In 2024, we saw the UK in-house financial services sector affected by economic uncertainty. This led to cautious hiring practices, particularly in senior roles. Additionally, a number of vacancies were put on hold due to these uncertain conditions, reflecting the hesitancy of firms to commit to new hires without clear economic stability. The market saw a shift towards increased office attendance, with companies emphasising in-person collaboration to attract talent. This trend was particularly evident in major investment banks, which were among the first to advocate for a full return to the office.
Conversely in Q1 2025, we have seen the UK in-house legal market in the financial services sector show signs of recovery. Legal hiring is picking up as economic conditions stabilise. There is a notable increase in fixed-term contracts and interim hiring, reflecting ongoing economic challenges and the need for flexible workforce solutions. The adoption of legal technology tools is also becoming more prevalent, helping firms manage risk and enhance efficiency. Despite the push for greater office attendance, hybrid working models continue to be valued for their ability to attract and retain talent.
Additionally, we are witnessing an increase in investment activity in private equity. This uptick is driven by a more stable economic environment, falling inflation rates, and the Bank of England’s accommodative policies. Private equity firms are increasingly active, seeking opportunities in various sub-sectors, which is contributing to a more dynamic and competitive market.
See our private equity market update.
Legal roles in financial services
We have seen significant growth in the recruitment of in-house legal roles in the UK over the last 12 months. The demand for legal professionals has increased across various sub-sectors, reflecting the sector’s expanding need for legal expertise to navigate complex regulatory environments and support business growth.
In the general financial services category, there has been substantial growth, indicating the sector’s expanding need for legal expertise.
Fintech has emerged as a key area of focus, highlighting the sector’s shift towards technology-driven solutions and the growing importance of legal professionals in managing digital transformation.
Funds and asset management have seen a slight decrease, possibly indicating market saturation or strategic shifts within firms. Insurance roles have declined, suggesting a similar trend. Investment and corporate banking, however, have experienced notable growth, underscoring the sector’s active engagement in mergers and acquisitions and the need for legal support in complex financial transactions.
Private equity roles have remained stable, reflecting steady activity in this area as firms continue to seek legal expertise for deal execution and compliance. Retail banking has seen new roles introduced, while venture capital has shown growing interest in innovative financial solutions. Professional services has experienced significant growth, highlighting the sector’s expanding demand for legal expertise.
Key Trends and Insights
We have seen an overall increase in vacancies, indicating strong demand for legal expertise within the financial services sector. This trend is driven by regulatory changes, increased M&A activity, and the growing complexity of financial products.
Overall, we see the legal recruitment market in the UK in-house financial services sector poised for continued growth, driven by evolving market dynamics and the increasing complexity of the financial landscape. Firms are likely to continue seeking specialised legal talent to navigate these changes and capitalise on emerging opportunities.
Contact Nikki Newton
Interim update
The first quarter of 2025 saw steady growth in interim in-house legal hiring across London, with both corporates and financial services firms continuing to rely on flexible legal resourcing. The increase in job flow was driven by a combination of sector recovery, evolving regulations, and a preference for agile hiring solutions amid ongoing budget considerations.
Corporate and commercial
Across the corporate and commercial sectors, there has been a notable rise in demand for interim legal professionals, particularly in the energy, technology, infrastructure and education sectors.
Notably, there has been a significant increase in interim transactional corporate roles, driven by a surge in M&A activity and business restructuring. This level of hiring in the corporate space hasn’t been seen in some time, signalling renewed business confidence and expansion, which has led to increased competition for talent. Consequently, salaries and day rates for interim corporate lawyers have risen, with businesses needing to offer attractive packages to secure top talent.
Financial services
The financial services sector presented a varied hiring landscape. While some areas, such as banking, remained more cautious due to macroeconomic factors, other sectors continued to see strong demand. Insurance stood out, making up nearly half of all vacancies in Q1, including a number of interim General Counsel positions. Fintech and asset management firms also maintained hiring levels, as many were unable to increase headcount or bring on interim support in 2024.
Trends and considerations
While overall job flow increased, companies remained mindful of long-term hiring commitments, leading to a continued reliance on interim legal professionals. This approach allowed businesses to stay agile while navigating market uncertainties. The rise in demand for interim corporate lawyers has been notable, but the factors motivating contractors remain varied. While competitive pay is still important, many professionals are drawn to the flexibility of interim roles, including hybrid working, exposure to new industries, and the opportunity to work on diverse and interesting projects that help broaden their skill sets.
Looking ahead
The interim in-house legal market in London is expected to remain strong throughout 2025, particularly in sectors experiencing regulatory change or market expansion. For legal professionals, maintaining adaptability, whether through gaining expertise in high-demand areas or embracing flexible contract roles, will be key to securing opportunities in this evolving landscape.
Contact our interim team
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