Law Soc report analyses future growth and changing market
updated on 15 February 2013
The Law Society has conducted its most comprehensive ever study into the legal services market, presenting a detailed analysis of the global and UK legal markets. Broadly speaking, it predicts continued growth in the global market, but rising pressure on high-street firms.
The report indicates that the UK legal services market will continue to improve, with annual growth of over 4% from 2015 onwards. Currently, the UK legal services market employs up to 320,000 people in England and Wales alone and contributes £3 billion to the United Kingdom's "balance of trade". Other key stats include the following:
- Total turnover of UK firms is approximately £25.6 billion (2010 figures).
- Solicitors account for 38-46% of individuals, 44% of entities and 58% of total UK turnover, but the role of non-solicitor and non-barristers is significant.
- Total turnover is estimated to have fallen between 2011 and 2012 to £25.4 billion. However, a return to modest growth is expected for UK legal services in 2013, rising slowly to £27.5 billion in 2015.
However, Law Society Chief Executive Des Hudson notes that the study reveals "a tale of two cities". He says: "In contrast to the granite and glass offices of the large law firms competing for business from around the world, traditional high-street solicitors' firms face a less rosy picture. Numbers of these firms have proved remarkably resilient over the last few years, even when their traditional sources of income - conveyancing residential property and representing legal aid funded clients - have halved. The best local firms are fighting to win an increasing share of a smaller market, but not all can succeed in this way."
The report also looks beyond economic factors, and considers a variety of elements that may drive change in the market, including:
- the changing behaviour of purchasers of legal services;
- globalisation, and global and national economic climates;
- changes to civil litigation and legal aid funding;
- the regulatory environment; and
- technological and process innovation.
