Sector analysis
Corporate, personal and property represent the largest individual sectors of the UK legal services market.
Corporate
This sector comprises legal matters arising from corporate transactions, M&A activity, initial public offerings (IPOs) and tax advisory.
The typical client profile for such work is corporates entities which need specialist advice on commercial matters, therefore larger firms are typically used for such work.
The adverse economic impact of Covid-19 led to a downturn in economic activity and consequently the quantum of IPOs.
Employment
This segment includes industrial and workplace-related legal issues, industrial action or health and safety regulations.
The sector has been buoyed as a result of higher demand from employers and employees since the Covid-19 outbreak.
The UK labour market has remained volatile since the pandemic, with high staff turnover and redundancy rates stimulating demand for employment law work.
Criminal, IP, immigration and other
There is currently a large backlog of criminal cases awaiting trial in England and Wales (per The National Audit Office), which is expected to drive significant levels of criminal law activity over the coming years.
If it were to be introduced by the UK government, a new points-based immigration system may support demand for immigration law services.
Source: IBIS World
Personal
The personal law sector specialises in will writing, divorce, family law, injury and compensation issues, welfare/benefits law and consumer problems.
According to analysis from the Ministry of Justice, revenue generated by UK-based law firms in respect of personal injury issues has contracted as measures to limit fraudulent personal injury claims have been implemented by the UK government.
From April 2022, couples can end marriages without apportioning blame on either party under The Divorce, Dissolution and Separation Bill, which is expected to increase demand for divorce case legal services.
Property
The property sector offers legal services in respect of selling, leasing, letting or buying property. The client type ranges from individuals to large corporates.
Lacklustre construction activity caused by rising interest rates and high inflation have adversely impacted upon property law practitioners.
It is, however, expected that government aid will revitalise the sector in the coming years.
Administrative and constitutional
This sector comprises the provision of governance and compliance advisory services to both the public and private sector.
Activity in this sector is expected to continue to rise as the UK government amends laws and regulations following Brexit and implements additional environmental regulations.
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