UK in-house legal recruitment market update Q1
Corporate and commercial
Year on year, Q4 2025 shows a more selective hiring landscape, with overall activity tracking around 23% lower than the same period in 2024. Several sectors however demonstrated strong momentum. Technology recorded a 17% uplift, continuing its pattern as a consistent driver of demand, particularly for roles linked to digital transformation. Media, marketing and entertainment also experienced significant growth, more than doubling year on year, supported by renewed investment in brand, content and audience engagement.
Retail and luxury saw a significant increase, benefiting from a steadier trading environment in late 2025 compared to prior 18 months. Meanwhile, other sectors moved in a more measured direction after unusually active periods in 2024 – especially areas such as hospitality which returned to more typical Q4 volumes following heightened peaks the previous year.
Across 2025, quarterly activity fluctuated, but the year closed with targeted and commercially focused hiring, particularly for roles supporting transformation, productivity and business growth. Looking ahead to 2026 we expect to see the demand for commercial, privacy and employment lawyers continuing and across all specialisms in-house lawyers must be developing their commerciality, AI/tech fluency and communication skills. This will be key to standing out and having the greatest impact in 2026 and beyond.
Contact Georgia Morgan-Wynne
Banking and financial services
The in-house legal hiring market across financial services and professional services in the UK closed Q4 2025 with a steady year-on-year increase, despite the usual year-end slowdown in decision-making for senior roles. While overall demand remained healthy, hiring patterns shifted as firms focused on strategic priorities heading into 2026.
Professional services was the standout growth area, with activity rising sharply compared to Q4 2024. This reflects increased investment in advisory and consulting capabilities, as firms sought legal expertise to support complex mandates. Accountancy also saw renewed hiring after a quiet previous quarter.
Within financial services, investment and corporate banking recorded a modest uplift, supported by transactional and regulatory projects. Funds and asset management maintained consistent demand, while FinTech showed renewed momentum, highlighting confidence in technology-driven platforms. Insurance activity eased compared to last year, and general financial services roles were lower, suggesting a more measured approach to headcount expansion. Private equity and venture capital hiring remained relatively low, in line with longer deal cycles.
Overall, Q4 demonstrated a selective but active market, with professional services leading growth, FinTech gaining traction, and funds remaining stable, while insurance and broader FS hiring moderated as firms prepared for 2026.
Contact Nikki Newton
Interim update
Q1 has seen a clear uptick in demand for interim legal professionals, as clients juggle day-to-day workloads alongside ongoing permanent hiring. Rather than hitting pause on recruitment altogether, many organisations are bringing in contractors to keep things moving while they take a more considered approach to long term hires. We are also seeing more interim to permanent briefs, particularly at mid to senior level.
Competition for candidates who are immediately available has stepped up, putting upward pressure on both salaries and consulting rates. This is most noticeable in commercial, regulatory, and transactional roles, where time critical hiring and hard to find skill sets tend to collide.
From a sector point of view, transport, technology and media have been particularly busy in commerce and industry side. Within financial services, asset managers, insurers and fintechs continue to instruct heavily, driven by ongoing regulatory change, transformation projects and steady deal activity.
Overall, the early part of 2026 has been defined by clients using interim resource in a proactive way to maintain momentum, protect delivery, and bring in specific expertise, rather than as a last minute fix. This really underlines the interim market’s position as a core part of how organisations plan and manage their legal teams.
Contact our interim team
Regional in-house legal hiring
As we move from Q4 2025 into the new year, regional in‑house legal recruitment across the UK continues to demonstrate cautious stability. Informed by the regional mandates we have supported and our regular engagement with both clients and candidates, hiring activity remains selective but more consistent than earlier in the year, with clearer regional and sector‑specific trends emerging outside London.
Certain cities continue to act as established regional hubs. Manchester and Leeds remain particularly active for financial services, insurance and regulated consumer businesses, driving demand for governance‑led and commercial in‑house roles. In Birmingham and across the wider Midlands, legal hiring has been closely aligned to manufacturing, infrastructure and energy projects, with employers prioritising operational support and risk management. Bristol and the South West continue to see project‑driven demand across energy, renewables, aerospace and defence, while Edinburgh and Glasgow remain steady markets for financial services, asset management and public sector legal teams.
Across all regions, we are seeing in‑house roles becoming broader in remit. From the roles we are working on, employers are increasingly focused on junior to mid‑level counsel who can operate cross‑functionally across commercial, operational, finance and compliance teams. This has increased the emphasis on providing pragmatic, business‑focused legal advice, driving demand for commercially astute lawyers with strong business awareness alongside technical legal expertise.
Flexible working remains central to hiring decisions, although expectations are now more defined. Most regional employers continue to operate on two to three days per week in the office, reflecting the need for collaboration, visibility and stakeholder engagement within lean legal teams.
Looking ahead to Q1 2026, we expect measured optimism, with budget resets unlocking business‑critical and replacement hires rather than large‑scale expansion.
Contact Aleea Cherry
Looking to hire legal staff?
