What changed in UK law firm hiring during H1 2026?
posted 02 Jul 26
H1 2026 was defined less by a lack of legal hiring activity than by a widening gap between firms that moved decisively and those that delayed.
Across the UK, firms continued to invest where there was a clear commercial need. However, hiring became more strategic, approval processes more rigorous and firms more selective about adding headcount.Â
The consistent message from law firm leaders and legal professionals was clear: strong candidates remained in demand, and firms that acted quickly and negotiated competitively secured the best talent.Â
Hiring decisions are now much more strategic and require careful internal sign-off. Even so, firms are prepared to go further for the right talent, negotiating on both salary and flexibility. A strong candidate remains the most valuable asset in any search.
Hiring demand remained strong in specific practice areas
Demand varied significantly by practice area.
Employment was one of the busiest areas, particularly in London, as legislative change continued to drive contentious and advisory work.
Private credit stayed active across refinancings, rescue financings, continuation vehicles and complex funding structures. Real estate finance also performed well, especially on the debt side, while energy and infrastructure teams benefited from a strong project and financing pipeline.
Litigation and disputes generated demand in London and the regions, with teams remaining busy despite wider economic uncertainty.
Regional markets showed steady demand in real estate, private wealth and residential property, reflecting consistent client instructions and workloads.
By contrast, M&A and private equity hiring remained subdued. Firms were cautious about expanding transactional teams and prioritised lawyers with directly relevant sector or financing experience.
Candidate movement increased as confidence slowly returned
Candidate behaviour also shifted during H1.
Many associates who had been reluctant to move over the previous 12 months became more willing to discuss their future. Confidence has not fully returned, but more lawyers are considering lateral moves.
Progression remained the main driver. Associates and counsel-level lawyers focused on career pathways, partnership prospects and the quality of work on offer.
Compensation also mattered. Salary expectations continued to rise, particularly in transactional areas, and firms often met resistance when offers fell below market expectations.
Counteroffers remained common, particularly for high-performing associates in candidate-short areas such as employment, private credit and real estate finance.
However, salary was rarely the only factor. Candidates increasingly assessed the full proposition, including flexibility, bonuses, progression and business stability.
Firms looked beyond technical legal expertise
Technical ability remained essential, but it was rarely enough on its own.
For partner and senior associate hires, firms placed greater emphasis on commerciality, client relationships and growth potential. Lawyers with strong client engagement, business development capability or sector expertise were often favoured over technically comparable candidates.
At partner level, hiring was highly selective and driven by clear business cases, with firms focused on strengthening specific practice areas rather than making speculative appointments.
For associates, specialisation became more important. In slower markets, firms prioritised candidates whose experience aligned directly with active client demand.
The firms with the most success understood their growth priorities and gave candidates a compelling reason to join.
What to expect in H2 2026
H2 is likely to follow many of the same patterns.
Employment, private credit, real estate finance, energy and infrastructure, litigation and disputes are expected to remain active. Regional real estate and private wealth should continue to generate steady demand.
For many firms, the biggest challenge is likely to be timing.
Hiring processes are taking longer, while candidate availability is improving. Firms that start searches early are likely to access stronger talent pools than those that wait until hiring becomes urgent.
Retention should also be a priority. More mid-senior associates are open to conversations, creating attrition risk for firms that have not addressed progression, compensation and career development.
The firms best placed for success will be those that recruit proactively rather than reactively.
For more insight into hiring demand, salary trends, partner recruitment, associate availability and H2 planning, download the full UK Legal Half-Year Market Insight Report.
To discuss your hiring plans or understand how these trends are affecting your practice area, speak to the Henderson Scott Legal team.
2026 Half-Year Legal Market Insight
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