Lawyers are optimistic about the future and predict a minimum 5% growth in the next few years, according to the 2019 UK Legal Services Market Trends Report.
The report, published by IRN Research and now in its ninth year, identifies that the UK legal services market was valued at £35.1bn in 2018, a 6.3% increase on the previous year; and that the number of law firms in the UK has stabilised at about 12,000, although nearly half are incorporated companies and about 1,300 firms operate as alternative business structures.
Business and commercial work accounts for nearly half of total market revenue. However, personal injury and clinical negligence makes about 11% of total market revenue despite this sector suffering setbacks such as the ban on referral fees.
A survey in the report of 176 practitioners in conveyancing, family law, personal injury, and wills and probate uncovered a healthy degree of optimism. The majority of the practitioners grew their practice area last year, and six out of ten firms predict volume growth in their practice in the next 12 months.
The report also makes predictions about the next 12-18 months, notably an increase in price transparency and in ‘DIY law’ via online services, as the Ministry of Justice promotes digital options to consumers and as the small claims limit rises in April 2020, excluding more people from access to legal advice and representation.
It anticipates ‘more downward pressures on fees as freelance solicitors benefit from lower overheads’. However, this will be accompanied by ‘concerns that less regulation of freelance solicitors and qualified solicitors working in unregulated practices could lower standards’.
Finally, it predicts that more law firms will list on the stock market and diversify into related professional services, for example, large personal injury firms expanding into accident management, insurance and medic-legal services.
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