Prime Highlights
- The UK legal services market is expected to grow across all areas in 2026, marking a positive rebound since the pandemic.
- Private equity and investor-backed law firms are driving mergers and expansion, creating new opportunities in family law and other sectors.
Key Facts
- The legal market is projected to reach £59 billion in 2026, with corporate law and commercial property making up over half of the total value.
- Personal injury, family law, and wills & probate sectors are expected to see steady growth, supported by rising demand and an ageing population.
Background:
The UK legal services market is expected to experience growth across all practice areas in 2026, marking the first time since the pandemic that every sector is projected to see an upswing, according to the latest UK Legal Services Market Report 2026 by IRN Legal Reports.
The report highlights a continuing trend of private equity involvement in the legal sector. Over the past year, around 31% of mergers and acquisitions involved either new investments by private equity firms or private-equity-backed law firms.
The overall value of the legal services market is projected to rise by 6.8% this year, reaching £59 billion, with an average annual growth of 5.5% expected through 2029. By then, the market is anticipated to reach £69 billion. Corporate law and commercial property remain the biggest contributors, making up more than half of the total market value.
Personal injury and medical negligence firms, which have seen slow growth in recent years, are starting to recover, especially in serious and complex cases. Road traffic accident claims, however, remain at historically low levels. Bigger law firms are likely to grow by using technology and efficient processes, while smaller firms may find it harder to get high-value cases.
Other areas are expected to grow too. Family law demand should increase, driven by financial settlements, domestic abuse, and child-related cases. Wills and probate work will rise as the population ages. Employment law should stay steady, though competition is high.
The report also expects more work in corporate restructuring, tax advice, and commercial property, especially in industrial and logistics areas. Recent cuts in interest rates may help the housing market, making it easier for people to get mortgages in 2026.
Overall, the UK legal market is set for steady growth, with new opportunities for law firms of all sizes.
