The UK Legal Services Market Report showed just 2 percent growth in the UK legal services market last year, which includes private practice firms, barristers, patent agents and other legal professionals. It is the slowest rate of growth in many years.
The report also shows there are more than 10,000 law firms in England and Wales and 85 percents of those are small firms with four or fewer partners. About 40 percent of firms are sole practitioners.
With regard to revenue, the biggest firms continue to dominate. The top 100 law firms claimed 74 percent of market revenues in 2009 while the top 10 firms generated 39 percent of all revenues.
The report goes on to note that the short-term outlook for the legal market remains cautious.
“The worst of the downturn may be over, but there are little signs of a strong recovery in key legal markets, including corporate work, conveyancing and commercial real estate,” the statement reads.
“Increased competition and consolidation seems inevitable, and more pressure on costs and fees. However, there is evidence of growing interest from outside investors in the legal services market.”